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The Economic Effect of Military Facility Contraction: A Naval Case Study

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  • Michael Asteris
  • David Clark
  • Shabbar Jaffry

Abstract

The global financial turmoil of 2008 has resulted in the curtailment of military expenditure in most western countries. At a sub-regional-level reductions in the level of activity at a major military facility can have significant economic impact. In the light of this, the paper has two objectives: to analyse the impact of the decision to terminate naval shipbuilding at the United Kingdom’s Portsmouth Naval Base; and, for illustrative purposes, to examine the possible economic consequences of further contraction at the facility. In pursuit of these aims, it is necessary to establish the output, income and employment generated by the base using a bespoke input–output model. The methodology employed can, with appropriate adjustments, be utilised in other military or civilian contexts.

Suggested Citation

  • Michael Asteris & David Clark & Shabbar Jaffry, 2018. "The Economic Effect of Military Facility Contraction: A Naval Case Study," Defence and Peace Economics, Taylor & Francis Journals, vol. 29(3), pages 268-293, April.
    • Handle: RePEc:taf:defpea:v:29:y:2018:i:3:p:268-293
    DOI: 10.1080/10242694.2015.1122281
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