The Economics of Military Expenditures: Military Expenditure, Economic Growth and Fluctuations

409 Pages·1987·33.794 MB·English

by  Christian Schmidt (eds.)

The Economics
of Military
Expenditures
Military Expenditure,
Economic Growth
and Fluctuations
EDITED BY
CHRISTIAN SCHMIDT
IEA CONFERENCE VOLUMES
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ECONOMIC GROWTH AND RESOURCES
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1 THE MAJOR ISSUES
R. C. 0. Matthews (editor)
2 TRENDS AND FACTORS
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3 NATURAL RESOURCES
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4 INTERNATIONAL POLICIES
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5 PROBLEMS RELATED TO JAPAN
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1 THE ISSUES
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2 CONCEPTS, MEASUREMENT AND LONG-RUN PERSPECfiVE
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The first fifty lEA conference volumes are available as a set from Palgrave Macmillan.
The Economics of Military
Expenditures
Military Expenditures, Economic Growth
and Fluctuations
Proceedings of a Conference held by the
International Economic Association in Paris,
France
Edited by
Christian Schmidt
M
MACMILLAN
© International Economic Association 1987
Softcover reprint of the hardcover 1st edition 1987 978-0-333-42238-0
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First published 1987
Reprinted 1989
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British Library Cataloguing in Publication Data
The Economics of military expenditures:
military expenditures, economic growth
and fluctuations: proceedings of a
conference held by the International
Economic Association in Paris, France.
I. Armed Forces-Appropriations and
expenditures 2. Munitions
I. International Economic Association
II. Schmidt, Christian
338.4'3623 UAI7
ISBN 978-1-349-08921-5 ISBN 978-1-349-08919-2 (eBook)
DOI 10.1007/978-1-349-08919-2
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Contents
Acknowledgements vii
List of Participants viii
Abbreviations and Acronyms xi
Introductory Remarks: Victor L. Urquidi xiii
INTRODUCTION Christian Schmidt xvii
PART ONE: STATISTICAL TREATMENT OF
ARMAMENT AND DISARMAMENT
1 Military Expenditure and the Arms Trade: Problems of
the Data Frank Blackaby and Thomas Ohlson 3
Note on the paper by Blackaby and Ohlson
Jacques Fontanel 25
2 A Note on the International Comparison of Military
Expenditures Jacques Fontanel 29
Note on the paper by Fontanel Frank Blackaby 44
3 Quantitative and Causal Analysis of Military
Expenditures Louis Pilandon 47
4 Negotiations to Reduce Military Expenditures - Problems
and Possibilities Hans Christian Cars 69
PART TWO: MACROECONOMIC ANALYSIS OF THE
IMPACT OF MILITARY EXPENDITURE
5 Military Expenditures and Economic Growth: Some
Theoretical Remarks Hendrik de Haan 87
Note on the Impact of Military Expenditure on Economic
Growth and Performance David Greenwood 98
6 The Burden of Defence in Developing Countries
Paul Rivlin 104
7 Economic Growth, Military Expenditure, the Arms
Industry and Arms Transfer in Latin America
Luis Herrera-Lasso 113
v
vi Contents
Note on the Impact of Military Expenditure on the
Japanese Economy Jun Nishikawa 135
Further Note on the Impact of Military Expenditure on
the Japanese Economy Isamu Miyasaki 138
PART THREE: STRATEGIC/ECONOMIC
APPROACHES TO ARMAMENTS
DYNAMICS
8 Semantic Variations on Richardson's Armaments
Dynamics Christian Schmidt 141
Note on the Paper by Schmidt Michael D. lntriligator 176
9 Can Arms Races Lead to the Outbreak of
War? Michael D. lntriligator and Dagobert L. Brito 180
10 US Foreign Assistance, Israeli Resource Allocation and
the Arms Race in the Middle East: an Analysis of
Three Interdependent Resource Allocation
Processes Martin C. McGuire 197
11 Arms Resupply During Conflict: a Framework for
Analysis R. E. Harkavy 239
PART FOUR: THE ANATOMY OF ARMS INDUSTRIES
12 Efficiency, Industry and Alternative Weapons
Procurement Policies Keith Hartley 283
Note on the Paper by Hartley Edwin Deutsch 301
13 Re-evaluating Economic and Technological Variables to
Explain Global Arms Production and Sales
Edward A. Kolodziej 304
14 Civil versus Military R & D Expenditures and Industrial
Productivity Edwin Deutsch and Wolfgang SchOpp 336
15 Arms Production in Third World Countries, Effects on
Industrialisation Herbert Wulf 357
Name Index 385
Subject Index 388
Acknowledgements
This conference owed much to the assistance of the Government of
France, both of individuals and ministries. The organisers would like
to thank the Prime Minister, the Ministry of the Economy and
Finance, the General Planning Authority, the Ministry of Industry
and Research, the Ministry of Defence, the Ministry of Education,
the National Centre for Scientific Research, the University Paris
IX-Dauphine where the sessions were held and the LESOD (Lab
oratorie d'Economie et de Sociologie des Organisations de Defense
headed by Christian Schmidt).
The International Economic Association gratefully acknowledges
the continued assistance of UNESCO in support of its activities.
Programme committee
Christian Schmidt (Chairman)
Edwin Deutsch
David Greenwood
Michael E. Intriligator
Edward A. Kolodziej
Robert Neild
Victor L. Urquidi
vii
List of Participants
Mr Frank Blackaby, Director, Stockholm International Peace Re
search Institute, Sweden
Professor Kenneth E. Boulding, University of Colorado at Boulder,
Institute of Behavioral Science, USA
Professor Dagobert L. Brito, Department of Economics, Tulane
University, New Orleans, USA
Dr Hans Christian Cars, Forsvarsdepartementet, Fack, Stockholm,
Sweden
Dr Edwin Deutsch, Institut fiir Okonometrie, Vienna, Austria
Mr Herve Douard, CASCI, Paris, France
Dr Gerard Duchene, Universite de Paris I, France
Dr Pierre Dussauge, CASCI, Paris, France
Professor Jose Antonio Encinas, Department of Political Science,
Kansas State University, USA
Professor Luc Fauvel, Secretary General, International Economic
Association, Paris, France
Professor Jacques Fontanel, Universite des Sciences Sociales de
Grenoble- UER- Faculte des Sciences Economiques, Grenoble,
France
Professor Giancarlo Graziola, Universita Cattolica di Sacro Cuore
Instituto di Scienze Economiche, Milan, Italy
Professor Henri Guitton, Member of the Institute, Paris, France
Dr David Greenwood, Director, Centre for Defence Studies, Aber
deen, Great Britain
Professor H. de Haan, Rijksuniversiteit Faculteit der Economische
Wetenschappen, Groningen, Netherlands
viii
List of Participants ix
Professor R. E. Harkavy, Department of Political Science, Pennsyl
vania State University, USA
Dr Keith Hartley, University of York, Department of Economics
and Related Studies, Great Britain
Professor Luis Herrera-Lasso, Centro de Estudios Economicos y
Sociales del Tercer Mundo AC, Mexico
Professor Michael D. Intriligator, University of California, Center
for International and Strategic Affairs, Los Angeles, USA
Professor Edward A. Kolodziej, University of Illinois at Urbana
Champaign, Department of Political Science, Illinois, USA
Professor Jacques Lesourne, Coservatoire National des Arts &
Metiers, Chaire d'Economie et Statistiques Industrielles, Paris,
France
Professor Emile Levy, Universite de Paris IX - Dauphine, Paris,
France
Professor Martin McGuire, University of Maryland, Department of
Economics, USA
Professor Edmond Malinvaud, Directeur General lnstitut National
de Ia Statistique & des Etudes Economiques, Paris, France
Mr Isamu Miyasaki, Special Adviser, Economic Planning Agency
Japanese Government, Japan
Professor Robert Neild, Economic Faculty Board, Cambridge, Great
Britain
Dr Jun Nishikawa, Special Fellow, UNITAR, New York, USA
Mr Thomas Ohlson, Stockholm International Peace Research
Institute, Sweden
Miss Sophie Pansieri, CASCI, Paris, France
Dr C. Passadeos, Universite d' Amiens, France
Professor Louis Pilandon, Universite de Clermont II, France
Dr Paul Rivlin, International Institute for Strategic Studies, London,
Great Britain
Dr Michael Rudnianski, Universite de Paris VII, CASCI, Paris,
France