The impact of arms production on the South African manufacturing industry

Alvin Birdi, John Dunne and David Saal

Defence and Peace Economics, 2000, vol. 11, issue 4, 597-613

Abstract: The 1977 UN arms embargo was one of the main factors which led South Africa to establish a largely self sufficient import-substituting arms industry capable of meeting the apartheid state's demand for sophisticated weaponry. While macroeconomic studies suggest that high military spending had a damaging effect on economic growth, no studies have investigated the disaggregated impact of military expenditure on industrial development. This paper applies panel data methods to the Industrial Development Corporation's Sectoral Database in order to analyse the level effects of military spending.

Keywords: Arms production; Government spending; Manufacturing; Panel data (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (4)

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DOI: 10.1080/10430710008404969

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