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 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 Element introduces students, policy-makers, politicians, governments and business-people to this new discipline within economics. It presents the recent history of the subject and its range of coverage. Traditional topics covered include models of arms races, alliances, procurement and contracting, as well as personnel policies, industrial policies and disarmament. Newer areas covered include terrorism and the economics of war and conflict. A non-technical approach is used and the material will be accessible to both economists and general readers.

The second volume of the Handbook of Defense Economics addresses defense needs, practices, threats, and policies in the modern era of globalization. This new era concerns the enhanced cross-border flows of all kinds (e.g., capital and labor flows, revolutionary rhetoric, guerrillas, and terrorists) including the spillovers of benefits and costs associated with public goods and transnational externalities (i.e., uncompensated interdependencies affecting two or more nations). These ever-increasing flows mean that military armaments and armies are less able to keep out security threats. Thus, novel defense and security barriers are needed to protect borders that are porous to terrorists, pollutants, political upheavals, and conflicts. Even increased trade and financial flows imply novel security challenges and defenses. Globalization also underscores the importance of a new set of institutions (e.g., the European Union and global governance networks) and agents (e.g., nongovernmental organizations and partnerships). This volume addresses the security challenges in this age of globalization, where conflicts involve novel tactics, new technologies, asymmetric warfare, different venues, and frightening weapons. Volume 2 contains topics not covered in volume 1 – i.e., civil wars, peacekeeping, economic sanctions, the econometrics of arms races, conversion, peace economics, and the interface of trade, peace, and democracy. Volume 2 also revisits topics from volume 1, where there has been a significant advancement of knowledge – i.e., conflict analysis, terrorism, arms races, arms trade, military manpower, and arms industries. All of the main securities concerns of today are analyzed. Chapters are written by the leading contributors in the topic areas. *Up-to-date surveys on the pressing defense issues: theoretical, empirical and policy issues.*Coverage of theoretical and empirical studies of terrorism.*Contributions by the leading researchers in the field of defense economics.

This book explains how the arms industry makes its money. Keith Hartley offers an authoritative nontechnical introduction to the economics of arms industries and considers future trends, such as whether arms industries are better under state or private ownership, and how they can meet the challenge of new threats in different forms.

A collection of essays on the modern arms industry, examining challenges posed by globalization, regional perspectives of arms-producing countries, and the relationship between the defense industry and the global arms trade.

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.