The regional impact of defense expenditure
In: Handbook of Defense Economics
This chapter examines the current state of knowledge regarding the economic impact of defense expenditure at the level of the regional economy from a global perspective. Appropriate theoretical and analytical approaches are identified and selected case studies reviewed. The regional concentration of defense expenditure is explored using a variety of indicators and perceived differences in the economic impact of defense industry decline and military base contraction and closure are evaluated. The chapter considers relevant labor market issues and examines the different impacts to be expected in developing countries. Policy implications are explored in the context of the post-Cold War environment confronting the defense sector.
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