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Determining The Defence Industrial Base

Author

Listed:
  • Paul Dunne
  • Maria del Carmen Garcia-Alonso
  • Paul Levine
  • Ron Smith

Abstract

This paper models the determination of the defence industrial base - the number of different military systems a country decides to maintain. High R&D costs means that few countries can afford to produce major weapons systems and the producers also import systems. Non-producers rely on imports and we assume their demand is driven by regional arms races. Military capability is determined by the number of systems and the quantity and quality of each. We examine how the defence industrial base is influenced by military expenditures, R&D costs, export controls, the nature of regional arms races and a variety of other factors.

Suggested Citation

  • Paul Dunne & Maria del Carmen Garcia-Alonso & Paul Levine & Ron Smith, 2007. "Determining The Defence Industrial Base," Defence and Peace Economics, Taylor & Francis Journals, vol. 18(3), pages 199-221.
  • Handle: RePEc:taf:defpea:v:18:y:2007:i:3:p:199-221 DOI: 10.1080/10242690600924273
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    References listed on IDEAS

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    1. Lotz, Joergen R, 1970. "Patterns of Government Spending in Developing Countries," The Manchester School of Economic & Social Studies, University of Manchester, vol. 38(2), pages 119-144, June.
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    3. Joshua Aizenman & Reuven Glick, 2006. "Military expenditure, threats, and growth," The Journal of International Trade & Economic Development, Taylor & Francis Journals, pages 129-155.
    4. Malcolm Knight & Norman Loayza & Delano Villanueva, 1996. "The Peace Dividend: Military Spending Cuts and Economic Growth," IMF Staff Papers, Palgrave Macmillan, vol. 43(1), pages 1-37, March.
    5. repec:cup:apsrev:v:65:y:1971:i:03:p:760-763_13 is not listed on IDEAS
    6. Benoit, Emile, 1978. "Growth and Defense in Developing Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 26(2), pages 271-280, January.
    7. J. Paul Dunne & Ron Smith & Dirk Willenbockel, 2005. "Models Of Military Expenditure And Growth: A Critical Review," Defence and Peace Economics, Taylor & Francis Journals, vol. 16(6), pages 449-461.
    8. Ram, Rati, 1986. "Government Size and Economic Growth: A New Framework and Some Evidencefrom Cross-Section and Time-Series Data," American Economic Review, American Economic Association, pages 191-203.
    9. Dalia S Hakura, 2004. "Growth in the Middle East and North Africa," IMF Working Papers 04/56, International Monetary Fund.
    10. repec:cup:apsrev:v:86:y:1992:i:03:p:748-755_09 is not listed on IDEAS
    11. repec:cup:apsrev:v:83:y:1989:i:04:p:1285-1293_08 is not listed on IDEAS
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    Citations

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    Cited by:

    1. repec:epc:journl:v:12:y:2017:i:2:p:21-31 is not listed on IDEAS
    2. Stephen Drinkwater & Peter Ingram, 2005. "Have Industrial Relations in the UK Really Improved?," LABOUR, CEIS, vol. 19(2), pages 373-398, June.
    3. J. Paul Dunne & Ron P. Smith, 2016. "The evolution of concentration in the arms market," Economics of Peace and Security Journal, EPS Publishing, vol. 11(1), pages 12-17, April.
    4. García-Alonso, María D.C. & Levine, Paul, 2008. "Strategic procurement, openness and market structure," International Journal of Industrial Organization, Elsevier, vol. 26(5), pages 1180-1190, September.
    5. Bove Vincenzo & Gleditsch Kristian Skrede, 2011. "2010 Lewis Fry Richardson Lifetime Achievement Award: Ron P. Smith and the Economics of War and Peace," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 17(1), pages 1-12, December.
    6. Joanne Evans & Eleftherios Goulas & Paul Levine, 2007. "Military Expenditure And Migration In Europe," Defence and Peace Economics, Taylor & Francis Journals, pages 305-316.

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