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Military Spending and Differential Accumulation: A New Approach to the Political Economy of Armament — The Case of Israel

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  • Shimshon Bichler

    (Dept. of Political Science, Jesrael College, Afula and The Davis Institute for International Relations, Jerusalem, Israel)

  • Jonathan Nitzan

    (Dept. of Political Science, Jesrael College, Afula and The Davis Institute for International Relations, Jerusalem, Israel)

Abstract

This paper offers a new approach to the political economy of armament, focusing on the relationship between military spending and differential accumulation in mature capitalist economies. Applied to the "model" case of Israel, our analysis suggests that the militarization of Israel's economy since the late 1960s occurred within a growing dichotomy between large and small firms. The econometric model shows that the "military-bias" of Israeli industry raised the profits of the large corporate conglomerates but constrained and even lowered those of smaller companies.

Suggested Citation

  • Shimshon Bichler & Jonathan Nitzan, 1996. "Military Spending and Differential Accumulation: A New Approach to the Political Economy of Armament — The Case of Israel," Review of Radical Political Economics, Union for Radical Political Economics, vol. 28(1), pages 51-95, March.
    • Handle: RePEc:sae:reorpe:v:28:y:1996:i:1:p:51-95
    DOI: 10.1177/048661349602800103
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    References listed on IDEAS

    as
    1. Martin C. McGuire, 1982. "U.S. Assistance, Israeli Allocation, and the Arms Race in the Middle East," Journal of Conflict Resolution, Peace Science Society (International), vol. 26(2), pages 199-235, June.
    2. Nitzan, Jonathan & Rowley, Robin & Bichler, Shimshon, 1989. "Changing Fortunes: Armaments and the U.S. Economy," EconStor Preprints 157846, ZBW - Leibniz Information Centre for Economics.
    3. Bichler, Shimshon & Rowley, Robin & Nitzan, Jonathan, 1989. "The Armadollar-Petrodollar Coalition: Demise or New Order?," EconStor Preprints 157848, ZBW - Leibniz Information Centre for Economics.
    4. Michael Bruno, 1989. "Israel's Crisis and Economic Reform: A Historical Perspective," NBER Working Papers 3075, National Bureau of Economic Research, Inc.
    5. Mintz, Alex & Ward, Michael D., 1989. "The Political Economy of Military Spending in Israel," American Political Science Review, Cambridge University Press, vol. 83(2), pages 521-533, June.
    6. Smith, R P, 1977. "Military Expenditure and Capitalism," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 1(1), pages 61-76, March.
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    Citations

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    Cited by:

    1. Abu-Qarn, Aamer, 2010. "The Defense-growth nexus: An application for the Israeli-Arab conflict," MPRA Paper 22275, University Library of Munich, Germany, revised 2010.
    2. Nitzan, Jonathan & Bichler, Shimshon, 2018. "Arms and Oil in the Middle East: A Biography of Research," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 30(3), pages 418-440.
    3. Nitzan, Jonathan & Bichler, Shimshon, 2001. "Going Global: Differential Accumulation and the Great U-turn in South Africa and Israel," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 33(1), pages 21-55.
    4. Bichler, Shimshon & Nitzan, Jonathan, 1996. "Putting the State In Its Place: US Foreign Policy and Differential Accumulation in Middle-East “Energy Conflicts”," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 3(4), pages 608-661.
    5. Bichler, Shimshon & Nitzan, Jonathan, 2023. "Manuscripts Don't Burn," Review of Capital as Power, Capital As Power - Toward a New Cosmology of Capitalism, vol. 2(2), pages 175-189.
    6. Hager, Sandy Brian, 2013. "Public Debt, Ownership and Power: The Political Economy of Distribution and Redistribution," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 157991, March.
    7. Nitzan, Jonathan & Bichler, Shimshon, 2002. "The Global Political Economy of Israel," EconStor Books, ZBW - Leibniz Information Centre for Economics, number 157972.
    8. Bichler, Shimshon & Nitzan, Jonathan, 2023. "The Capital As Power Approach. An Invited-then-Rejected Interview with Shimshon Bichler and Jonathan Nitzan," Review of Capital as Power, Capital As Power - Toward a New Cosmology of Capitalism, vol. 2(2), pages 96-174.
    9. Nitzan, Jonathan, 2001. "Regimes of Differential Accumulation: Mergers, Stagflation and the Logic of Globalization," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 8(2), pages 226-274.
    10. Nitzan, Jonathan & Bichler, Shimshon, 2018. "The CasP Project: Past, Present, Future," Review of Capital as Power, Capital As Power - Toward a New Cosmology of Capitalism, vol. 1(3), pages 1-39.
    11. Nitzan, Jonathan, 1998. "Differential Accumulation: Toward a New Political Economy of Capital," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 5(2), pages 169-217.
    12. Aamer Abu-qarn, 2010. "The Defence-Growth Nexus Revisited: Evidence From The Israeli-Arab Conflict," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(4), pages 291-300.
    13. Aamer S. Abu-Qarn, 2008. "Six decades of the Israeli-Arab conflict: An assessment of the economic aspects," Economics of Peace and Security Journal, EPS Publishing, vol. 3(2), pages 8-15, July.
    14. Nitzan, Jonathan & Bichler, Shimshon, 2000. "Inflation and Accumulation. The Case of Israel," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 64(3), pages 274-309.

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