The Economics Of Defense Industry

This book makes an original contribution to our knowledge of the world’s major defence industries. Experts from a wide range of different countries – from the major economies of North America and Western Europe to developing economies and some unique cases such as China, India, Singapore, South Africa and North Korea – describe and analyse the structure, conduct and performance of the defence industry in that country. Each chapter opens with statistics on a key nation’s defence spending, its spending on defence R&D and on procurement over the period 1980 to 2017, allowing for an analysis of industry changes following the end of the Cold War. After the facts of each industry, the authors describe and analyse the structure, conduct and performance of the industry. The analysis of ‘structure’ includes discussions of entry conditions, domestic monopoly/oligopoly structures and opportunities for competition. The section on ‘conduct’ analyses price/non-price competition, including private and state funded R&D, and ‘performance’ incorporates profitability, imports and exports together with spin-offs and technical progress. The conclusion explores the future prospects for each nation’s defence industry. Do defence industries have a future? What might the future defence firm and industry look like in 50 years’ time? This volume is a vital resource and reference for anyone interested in defence economics, industrial economics, international relations, strategic studies and public procurement.

This book on the economics of defence industry assesses a series of historical and contemporary case studies that consistently demonstrate the need for governments to recognise, and thereafter factor, the financial needs of a narrow industrial sector that is capital intensive, technologically advanced and that requires a highly skilled labour force. Since the end of the cold war, Western governments have systematically reduced financial support to their domestic defence industry and have seemingly ignored planning and funding industrial mobilisation. In all cases, government policy has been to encourage industries to consolidate capacity to become financially viable in a sector that has seen diminished demand. The 2022 Russian invasion of Ukraine has caused Western governments to reassess their previous assumptions. Efforts to increase industrial capacity have been met with the iron laws of economics whereby businesses need to show return on investments. The chapters in this volume posit that efforts to rationalise industrial capacity and innovation to meet short-term financial efficiencies, inevitably results in limited, expensive, and long delays in increased production in times of international crisis. This book serves as an essential guide for academics, researchers and students interested in defence economics, industrial economics, international relations, and industrial policy. The chapters in this book were originally published in various issues of Defense & Security Analysis.

This handbook examines the state of defence economics, covering theoretical analysis, econometric techniques and policy issues. The chapters fall into two categories - surveys and conceptual studies.

This volume provides a policy-relevant analysis of the complex web of contemporary economic trends, political developments and strategic considerations that are shaping the contours of the new post-Cold War world market for weaponry.

This compelling book provides an up-to-date survey of the field of defense economics, the study of defense and peace issues, with the application of economic analysis and methods. The subject embraces both microeconomics and macroeconomics, taking into account such features as growth theory, comparative statistics, game theory and econometrics. A wide range of topics are addressed, including all aspects of the economics of defense, disarmament, conversion and peace. The implications of different organizational forms and their performances are examined, considering the efficient management of defense resources budgets and internal markets in the armed forces. In this groundbreaking volume, Sandler and Hartley synthesize and unify the vast literature on defense economics and peace science.

Whether it's guns and ammunition or multidimensional anti-terrorism systems, the defense industry is dynamic, complex, and ubiquitous. It is also mysterious, powerful, and controversial, involving thousands of players worldwide—from suppliers and producers to government and military procurers to shadowy figures that trade in the black market. This comprehensive, two-volume reference will explore, on a global scale, the various issues, concepts, problems, and controversies surrounding the rise of the modern defense industry. Unparalleled in its scope and insight, The Modern Defense Industry will prove invaluable to the industry's critics and champions alike. The phenomenon of a more-or-less permanent defense industry—especially one so wide in scale, breadth (air, sea, land, and space), technology, and geography—is still relatively new. Until now, its implications for politics, economics, and technology have not been adequately discussed in an authoritative, accessible format for scholars and researchers, business people, journalists, policymakers, and interested laymen. The Modern Defense Industry addresses the period from 1945 to the present, covering the United States, Europe, Russia, China, Israel, and other important arms-producing and arms-procuring countries. Including essays by experts from around the world, a glossary, data on firms and governments, laws and policies, primary documents, case studies, and a host of other elements, this set will be a unique resource for anyone interested in the arms industry. It will also offer penetrating insights into topics like international relations and diplomacy, arms proliferation, and contemporary politics. Volume I comprises chapters by experts in the field on topics like the relationship between the industry, military, and government; how new modes of warfare are changing the industry; the implications of globalization on the industry; the black and gray areas of the arms trade; and much more. Volume II features an extensive A-Z glossary of terms, lists of defense firms and government agencies, annotated primary documents, lists of leading defense contractors and key weapons systems, an analysis of key legislation, and professional organizations. The Modern Defense Industry sets the standard for state of the art overviews of an industry that has, for better or worse, come to infuse nearly every aspect of world affairs in the early twenty-first century.

Despite their growth, outlined and analysed in this book, the claims and counter-claims that surround offsets have not been subjected to critical scrutiny by economists. This book fills that gap. It brings together a team of internationally renowned specialists to document and evaluate the economic impact of several countries' offset policies. In addition, the papers by industrialists and defence officials yield further insights which help to tease out which of the claims made for offsets do not stand critical scrutiny.

Study of defence economics, defence budgeting and arms procurement in UK, France, Germany, Federal Republic, Canada, USA, and USSR, the defence industry's militarism, and economics of disarmament - includes a literature survey of military expenditure and background economic theory; examines NATO and selected countries' gross national product and per capita national income; analyses defence planning, inter- relationship between military institutions and industries supplying military hardware; considers impact of defence spending. Bibliography.