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Military industrialization and economic development: Jordan's defense industry

Jomana Amara ()

Review of Financial Economics, 2008, vol. 17, issue 2, 130-145

Abstract: Jordan is a recent entrant to the domestic defense industry with the establishment of King Abdullah II Design and Development Bureau (KADDB) in 1999. The defense industrial initiative is intended to jumpstart industrialization across a range of sectors. With the Jordanian defense expenditures at 8.7% of GDP, the Jordanian authorities created the defense industry to utilize defense budget spending power and to assist in economic growth without placing additional demands on the national budget. This study examines Jordan's attempt to establish a defense industry and reviews its accomplishment. The study also compares the economic achievements of the defense industry to those of the Qualified Industrial Zone (QIZ), another major government facilitated economic development mechanism.

Date: 2008
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Handle: RePEc:eee:revfin:v:17:y:2008:i:2:p:130-145