Defence expenditures have both costs and benefits to the economy. The costs of defence expenditures are mainly emphasized as opportunity costs. On the other hand, defence spending may have growth-promoting potential benefits: a rise in defence spending may result in a higher aggregate demand,...

This paper examines empirically whether democracies allocate fewer resources to the military than dictatorships do. It employs a panel of up to 112 countries over the period 1960-2000 to estimate a standard demand for military spending model. While papers on the determinants of military spending...

Within the EU France devotes to defence the largest financial and human resources although it is not the richest country, nor has it the largest population or labour force. The cost of nuclear weapons accounts for only a small fraction of this abnormally high French defence effort. If France had...

This paper provides a methodology for estimating the economic impact of defence spending at a sub-regional level. It does so by calculating the income and employment generated by Britain's Royal Navy and associated defence activities in the City of Portsmouth and its surrounding area, during the...

The Soviet Union was able to develop a large military-industrial complex and become the world’s second superpower despite the small size of its malfunctioning planned economy because defence was given high priority status and special planning, rationing and administrative mechanism were...

Sales of arms are a significant component of international trade and raise a range of pressing policy issues. After a short review of the market, this paper provides a formal model of the trade which allows for competing, forward-looking suppliers whose welfare depends on both the economic...

The Soviet Union was able to develop a large military-industrial complex and become the world's second superpower despite deficiencies in its centrally planned economy because defence was given high priority status and special planning, rationing and administrative mechanisms were used to attain...

The Western European defence industry used to be characterized by numerous constraints, especially in the small countries, subject to uneconomic defence production policies. It faces, since the end of the Cold War, a succession of new challenges such as budget restrictions, armament reductions...

Although it is difficult to establish a classification of the models which analyze the determinants of defence expenditure due to their great heterogeneity, the present article takes as a starting point the contributions of Smith (1989) and Dunne and Perlo-Freeman (2003a y 2003b), to offer an...