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Determining The Defence Industrial Base

Author

Listed:
  • Paul Dunne
  • Maria del Carmen Garcia-Alonso
  • Paul Levine
  • Ron Smith

Abstract

This paper models the determination of the defence industrial base - the number of different military systems a country decides to maintain. High R&D costs means that few countries can afford to produce major weapons systems and the producers also import systems. Non-producers rely on imports and we assume their demand is driven by regional arms races. Military capability is determined by the number of systems and the quantity and quality of each. We examine how the defence industrial base is influenced by military expenditures, R&D costs, export controls, the nature of regional arms races and a variety of other factors.

Suggested Citation

  • Paul Dunne & Maria del Carmen Garcia-Alonso & Paul Levine & Ron Smith, 2007. "Determining The Defence Industrial Base," Defence and Peace Economics, Taylor & Francis Journals, vol. 18(3), pages 199-221.
    • Handle: RePEc:taf:defpea:v:18:y:2007:i:3:p:199-221
    DOI: 10.1080/10242690600924273
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    References listed on IDEAS

    as
    1. Paul Dunne & Maria del Carmen Garcia-Alonso & Paul Levine & Ron Smith, 2005. "Military Procurement, Industry Structure and Regional Conflict," Studies in Economics 0502, School of Economics, University of Kent.
    2. Michelle R. Garfinkel & Stergios Skaperdas, 2000. "Conflict without Misperceptions or Incomplete Information," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(6), pages 793-807, December.
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    6. Andreas Blume & Asher Tishler, 2000. "Security Needs and the Performance of the Defense Industry," CIG Working Papers FS IV 00-04, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    7. Garfinkel, M.R. & Skaperdas, S., 2000. "Conflict without Misperceptions or Incomplete Information: how the Future Matters," Papers 99-00-11, California Irvine - School of Social Sciences.
    8. Keith Hartley, 2006. "Defence Industrial Policy in a Military Alliance," Journal of Peace Research, Peace Research Institute Oslo, vol. 43(4), pages 473-489, July.
    9. Jack Hirshleifer, 2000. "The Macrotechnology of Conflict," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(6), pages 773-792, December.
    10. Paul Levine & Fotis Mouzakis & Ron Smith, 2000. "Arms export controls and emerging domestic producers," Defence and Peace Economics, Taylor & Francis Journals, vol. 11(3), pages 505-531.
    11. Levine, Paul & Smith, Ron, 2000. "The Arms Trade Game: From Laissez-Faire to a Common Defence Policy," Oxford Economic Papers, Oxford University Press, vol. 52(2), pages 357-380, April.
    12. Charles H. Anderton, 2000. "An Insecure Economy under Ratio and Logistic Conflict Technologies," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(6), pages 823-838, December.
    13. Saar Golde & Asher Tishler, 2004. "Security Needs, Arms Exports, and the Structure of the Defense Industry," Journal of Conflict Resolution, Peace Science Society (International), vol. 48(5), pages 672-698, October.
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    Cited by:

    1. Dimitrios Doulos & Odysseus Katsaitis & George A. Zombanakis, 2021. "How to Make Butter out of Guns: The Turkish Case and the Greek Bitter Lesson," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 1055-1072.
    2. J. Paul Dunne, 2017. "War, peace, and development," Economics of Peace and Security Journal, EPS Publishing, vol. 12(2), pages 21-31, October.
    3. J. Paul Dunne & Ron P. Smith, 2016. "The evolution of concentration in the arms market," Economics of Peace and Security Journal, EPS Publishing, vol. 11(1), pages 12-17, April.
    4. Blum, Johannes, 2019. "Arms production, national defense spending and arms trade: Examining supply and demand," European Journal of Political Economy, Elsevier, vol. 60(C).
    5. Ron Smith & Jacques Fontanel, 2008. "International security, defence economics and the powers of nations," Post-Print hal-02091131, HAL.
    6. García-Alonso, María D.C. & Levine, Paul, 2008. "Strategic procurement, openness and market structure," International Journal of Industrial Organization, Elsevier, vol. 26(5), pages 1180-1190, September.
    7. Klomp, Jeroen, 2023. "Defending election victory by attacking company revenues: The impact of elections on the international defense industry," European Journal of Political Economy, Elsevier, vol. 79(C).
    8. Bove Vincenzo & Gleditsch Kristian Skrede, 2011. "2010 Lewis Fry Richardson Lifetime Achievement Award: Ron P. Smith and the Economics of War and Peace," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 17(1), pages 1-12, December.
    9. Johannes Blum, 2019. "Angebot und Nachfrage auf dem Rüstungsmarkt – Evidenz auf Basis von Unternehmensdaten aus der Rüstungsindustrie," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 72(18), pages 34-37, September.
    10. Joanne Evans & Eleftherios Goulas & Paul Levine, 2007. "Military Expenditure And Migration In Europe," Defence and Peace Economics, Taylor & Francis Journals, vol. 18(4), pages 305-316.

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