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The impact of arms production on the South African manufacturing industry

Author

Listed:
  • Alvin Birdi
  • Paul Dunne
  • David Saal

Abstract

The 1977 UN arms embargo was one of the main factors which led South Africa to establish a largely self sufficient import-substituting arms industry capable of meeting the apartheid state's demand for sophisticated weaponry. While macroeconomic studies suggest that high military spending had a damaging effect on economic growth, no studies have investigated the disaggregated impact of military expenditure on industrial development. This paper applies panel data methods to the Industrial Development Corporation's Sectoral Database in order to analyse the level effects of military spending.

Suggested Citation

  • Alvin Birdi & Paul Dunne & David Saal, 2000. "The impact of arms production on the South African manufacturing industry," Defence and Peace Economics, Taylor & Francis Journals, vol. 11(4), pages 597-613.
    • Handle: RePEc:taf:defpea:v:11:y:2000:i:4:p:597-613
    DOI: 10.1080/10430710008404969
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    References listed on IDEAS

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    1. David Saal, 1999. "The Impact of Defense Procurement On U.S. Manufacturing Productivity Growth," Departmental Working Papers 199906, Rutgers University, Department of Economics.
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    Cited by:

    1. Goodness C. Aye & Mehmet Balcilar & John P. Dunne & Rangan Gupta & Rene� van Eyden, 2014. "Military expenditure, economic growth and structural instability: a case study of South Africa," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(6), pages 619-633, December.
    2. Aying Liu & David Saal, 2001. "Structural Change in Apartheid-era South Africa: 1975-93," Economic Systems Research, Taylor & Francis Journals, vol. 13(3), pages 235-257.
    3. Matthew Moore, 2010. "Arming the Embargoed: A Supply-Side Understanding of Arms Embargo Violations," Journal of Conflict Resolution, Peace Science Society (International), vol. 54(4), pages 593-615, August.
    4. Alexamder, W.R. & Hansen, P. Author-Emai, 2004. "A Criritique of the Multi-Sector Model of the Effects of Military Spending on Economic Growth," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 4(2).

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