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National Security or Private Profits? Trade in Dual-Use Commodities

Author

Listed:
  • Denise Eby Konan

    () (Department of Economics, University of Hawaii at Manoa)

  • Natalia Tabatchnaia-Tamirisa

Abstract

This paper develops a simple model of imperfectly competitive trade in commodities with both military and civilian applications, a.k.a. dual-use commodities. We consider the role of export barriers and foreign economic aid in encouraging peaceful rather than military application of dual-use commodities in importing countries. When governments conjecture the profit-shifting effect of their policies, Nash equilibrium policies combine export barriers and foreign aid.

Suggested Citation

  • Denise Eby Konan & Natalia Tabatchnaia-Tamirisa, 1996. "National Security or Private Profits? Trade in Dual-Use Commodities," Working Papers 199605, University of Hawaii at Manoa, Department of Economics.
  • Handle: RePEc:hai:wpaper:199605
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    File URL: http://www.economics.hawaii.edu/research/workingpapers/88-98/WP_96-5.pdf
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    More about this item

    Keywords

    dual-use commodities; national security; defense economics;

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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