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Productive Complex of Defense and Security in Brazil: dimension, sectoral and technological impacts

Author

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  • Joaquim José Martins Guilhoto
  • Paulo César Morceiro, Milene Simone Tessarin

Abstract

The defense and security sector engages in a series of production and service activities that, beyond their contribution to national security and sovereignty, play an important role in terms of technological development, labor qualification, and social and economic impact. In this study, we measure the GDP of the defense and security complex in Brazil, including the upstream and downstream links of the value chain, comprising unpublished information of the country. We also assess the socioeconomic impacts of 23 investment projects of the Brazilian armed forces. We find that the Defense and security complex of Brazil corresponded to 3.7% of the country’s GDP in 2014, indicating a high potential to generate jobs paying wages above the economy average. Investment projects of the Brazilian armed forces have significant impacts on the national economy. The sectors directly affected by the investment projects are the medium-high and high technology industries and knowledge-intensive services. These sectors contribute to structural changes in Brazil once the country’s current production structure concentrates in low-intensive knowledge services sectors and commodities. Brazil lacks in studies and evaluations of public policies pertaining to the defense and security sector, and this study is an attempt to reduce these gaps.

Suggested Citation

  • Joaquim José Martins Guilhoto & Paulo César Morceiro, Milene Simone Tessarin, 2016. "Productive Complex of Defense and Security in Brazil: dimension, sectoral and technological impacts," Working Papers, Department of Economics 2016_28, University of São Paulo (FEA-USP).
  • Handle: RePEc:spa:wpaper:2016wpecon28
    as

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    File URL: http://www.repec.eae.fea.usp.br/documentos/Guilhoto_Morceiro_Tessarin_28WP.pdf
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    References listed on IDEAS

    as
    1. Angelo Reati, 2014. "Economic Policy for Structural Change," Review of Political Economy, Taylor & Francis Journals, vol. 26(1), pages 1-22, January.
    2. Takasago, Milene & Guilhoto, Joaquim José Martins & Mollo, Maria de Lourdes Rollemberg & Andrade, Joaquim Pinto de, 2010. "O potencial criador de emprego e renda do turismo no Brasil
      [The potential to create employment and income from tourism in Brazil]
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    3. William P. Rogerson, 1994. "Economic Incentives and the Defense Procurement Process," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 65-90, Fall.
    4. Kulve, Haico te & Smit, Wim A., 2003. "Civilian-military co-operation strategies in developing new technologies," Research Policy, Elsevier, vol. 32(6), pages 955-970, June.
    5. Nicholas M. Trebat & Carlos Aguiar De Medeiros, 2014. "Military Modernization in Chinese Technical Progress and Industrial Innovation," Review of Political Economy, Taylor & Francis Journals, vol. 26(2), pages 303-324, April.
    6. Smith, R. P., 1990. "Defence procurement and industrial structure in the U.K," International Journal of Industrial Organization, Elsevier, vol. 8(2), pages 185-205, June.
    7. Chris Freeman & Luc Soete, 1997. "The Economics of Industrial Innovation, 3rd Edition," MIT Press Books, The MIT Press, edition 3, volume 1, number 0262061953, May.
    8. Rabia Aslam, 2007. "Measuring The Peace Dividend: Evidence From Developing Economies," Defence and Peace Economics, Taylor & Francis Journals, vol. 18(1), pages 39-52.
    9. Mowery, David C., 2012. "Defense-related R&D as a model for “Grand Challenges” technology policies," Research Policy, Elsevier, vol. 41(10), pages 1703-1715.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    productive complex of defense and security; projects of investment; technological spillovers; value chain; input-output analysis.;

    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

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