The structure of defense production in the United States, 1929‐∗

This article contains a critical review of the literature on the economics of military affairs in Greece and Turkey as of December 1999. In particular, I review (a) arms race models; (b) models of the demand for military expenditure; (c) models measuring the economic impact of military expenditure; and (d) literature and issues related to indigenous arms production. I conclude with a number of summary lessons and observations of how future research might improve upon the existing body of work.     

Evaluating the trade‐off between military spending and investment in the United States

Using tests of a single equation model and cointegration techniques, this paper finds no evidence of a long run trade‐off, and some evidence of a short‐run trade‐off, between military spending and investment in post‐World War II United States data. The short‐run trade‐off is confined to the 1949–1971 period, and may be the result of the sharp expansion and contraction of military outlays in connection with the Korean and Vietnam Wars. In addition, cointegration techniques are used to identify a possible long‐run trade‐off between military spending and consumption.     

Estimating defence budget saving from disarmament: the United States’ case

Probing the technology in the production of US national defence by using a dynamic cost‐function model with adjustment costs, this paper evaluates the effect of reducing the level of national defence on the defence budget saving. Our inquiry involves estimating the defence production structure without output data for non‐market goods that are normally unavailable. Our findings include: (i) the United States behaves rationally to minimize cost in the production of national defence; (ii) the adjustment costs are larger in disarmament than in military build‐up; (iii) due to the adjustment costs peculiar to disarmament, the defence budget saving from disarmament appears small, but cutbacks allow great savings on the defence budget.     

A non‐linear defence‐growth nexus? evidence from the US economy

The defense‐growth nexus is investigated empirically using time series data for the US and allowing the effect of defense spending on growth to be non‐linear. Using recently developed econometric methods involving threshold regressions, evidence of a level‐dependent effect of military expenditure on GDP growth is found: the positive externality effect of defense spending prevails for relatively lower levels of defense spending (with respect to the history of defense spending in the US) and reverts its influence for higher levels.     

‘Innovate or die’: Organizational culture and the origins of maneuver warfare in the United States Marine Corps

The purpose of this article is twofold. First, this article contributes to the understanding of the origins of maneuver warfare as the capstone doctrine of the Marine Corps. It does so by identifying a second source that fostered change in the Marine Corps – one in addition to disquiet about the conduct of the war in Vietnam – which stemmed from the challenges posed by the United States' post-Vietnam strategic and military reorientation. And second, this article examines the influence of organizational culture, or identity, on innovation in the Marine Corps. A critical strand in the growing literature on military innovation focuses on organizational culture and how it influences the behavior and responses of particular military organizations. This article contributes to this literature by analyzing the influence of the organizational culture of the Marine Corps in shaping what was deemed an appropriate response to the challenges it confronted in the 1970s.     

From one exceptionalism to another: France’s strategic relations with the United States and the United Kingdom in the post-Cold War era

ABSTRACT

The failed expedition of Suez in 1956 and France’s subsequent strategic ‘divorce’ from the United Kingdom and the United States lies at the heart of a policy paradigm that has dictated France’s defence posture from de Gaulle’s presidency to the end of the Cold War. Some crucial features of the Gaullist posture remain today enduring references for French presidents in the definition of France’s exceptionalism. While it is so, there have been significant changes since the 1990s when it comes to France’s strategic relations with the United States and the United Kingdom. This article demonstrates the extent and mechanisms of this rapprochement by analysing it through three dimensions of policy change: modes of action, institutional commitments and discourses. The article demonstrates the dimensions’ mutually reinforcing effects and argues that France’s exceptional posture has de facto been reversed.     

Sharing security in an era of international cooperation: unmanned aerial vehicles and the United States’ Air Force

The United States’ Air Force (USAF) has developed and used unmanned aerial vehicle (UAV) technology to monitor and assassinate dangerous terrorists in Afghanistan, Iraq, Libya, Pakistan, Somalia, Syria, and Yemen. Currently, there are few countries that possess armed UAV and since the US created much of this technology, the USAF is usually part of the training that automatically accompanies the purchase of its UAVs. The research question this article attempts to answer is, “What is the extent of the United States’ Air Force assistance in the training and proliferation of UAV technology to foreign militaries?”     

A note on the causal relationship between defence spending and growth in Greece: 1955–93

The causal relationship between economic growth and defence spending has attracted considerable attention and has been the subject of many empirical studies. This paper investigates the existence of a causal link between military expenditure and economic growth in the case of Greece for the period 1955–93. By European Union standards, Greece allocates substantial human and material resources to defence. At the same time, Greece is the poorest European Union member facing chronic economic problems. Using the concept of Granger‐causality, the findings reported herein suggest that neither variable Granger‐causes the other disclosing thereof the absence of any causal ordering between them.     

Does Health Spending Crowd out Defense in the United States? Evidence from Wavelet Multiresolution Analysis

Abstract

This study investigates the association between defense and health spending using multi-resolution analysis incorporating the structural change model. Our empirical results suggested that a negative correlation between defense and health spending persists over the entire period of 1941–2013 in the very long-run (over 16 years cycle), but there is a change in correlation between defense and health spending in the short-run (2–4 years cycle), medium-run (4–8 years cycle), and long-run (8–16 years cycle) during the same period. In particular, there appears to have been a trade-off relationship between defense and health spending during the ex-Korean War period, but there was a complementary relationship between defense and health spending during the post-Korean War period. The crowding-out effect of health spending on defense spending during the period when the Affordable Care Act was put into effect relies on the strength of the positive correlation in the long-run (8–16 years cycle) and negative correlation in the short-run (2–4 years cycle) and very long-run (over 16 years cycle).     

India–Africa defence cooperation against the backdrop of the ‘Make in India’ initiative

Although India is a major importer of defence equipment, it has also been manufacturing defence equipment for some of its needs. The Government of India’s ambitious ‘Make in India’ initiative for the defence sector aims to achieve self reliance in defence equipment production. This essay explores the opportunities for bilateral arms trade between India and Africa, as a new facet of India-Africa defence cooperation. It covers India’s arms export policy, policy reforms in India’s defence sector, and the opportunities for Indian and African defence markets.     

The subversion of the Bulgarian defence system – the Russian way

Russia has long been pursuing an intended and calculated policy of keeping enough influence in Bulgaria in order to have control over national decisions. Together with the economic, energy, political and information tools used by Russia in its hybrid war against Bulgaria and in its bid to achieve an enduring “state capture,” defence is also a distinct target of Russian subversion now. A list of noticeable subversive actions with tangible effects can be summarised, ranging from fuelling division and manipulating public opinion, preventing the strengthening of the NATO position in the Black Sea, sabotaging defence reform to various options of subverting the modernisation of the Bulgarian Armed Forces and seeking new ways to keep legacy Soviet military equipment in operation as long as possible. This issue must be urgently addressed both nationally and in NATO.     

The rationalisation of warship building in the United Kingdom, 1945–2000

After the Second World War the Admiralty and shipbuilding industry agreed that the largest possible capacity for warship building should be maintained. This proved impossible as the Royal Navy struggled to evoke a strategy in the nuclear era and the price of increasingly complex vessels rose remorselessly. As the shipbuilding industry wilted in the 1960s in the face of international competition a process of natural selection was followed by increasing political intervention in the industry. Nationalisation in the 1970s aimed to preserve capacity and employment, policy aims which were reversed by privatisation in the 1980s and which, ultimately resulted in an oligopoly in the warship building sector.     

Brothers in arms,yet again? Twenty-first century Sino-Russian strategic collaboration in the realm of defence and security

2014–2015 were years of turmoil for strategic relations, with Sino-Russian relations emerging as a particularly interesting set of ties to observe. This article asks whether recurrent Sino-Russian exhortations of friendship are mirrored by their strategic alignment in the defence and security realm, half a century after the end of the Sino-Soviet pact during the communist era. We examine the arms trade between the two countries and with regional partners, but also the recent pattern of bilateral and multilateral military exercises, as a combined test of the security and defence relationship. We are able to show that the image of friendship that both Moscow and Beijing like to promote, while apparent at the UN Security Council and within the BRICS group, remains constrained by rivalry in high-tech segments of the arms industry and by lingering concerns about the prospects of peer interference in their shared regional vicinity.     

Delusion of Defeat: The United States and Iraq, 1990–1998

This article challenges the widely held belief that that the United States ‘won the war but lost the peace’ following the war with Iraq in 1991. Fears of a resurgent Iraq grew throughout the decade, despite abundant evidence that Iraq was becoming desperately weak and was no longer a threat to regional security. In fact, the United States won the war as well as the peace by any meaningful definition of the term. The article also discusses the reasons why US policymakers and observers convinced themselves that they had lost. The final section considers implications for strategy and policy in wars of limited objectives.     

Inside the Iraqi State Records: Saddam Hussein, ‘Irangate’, and the United States

This article uses captured Iraqi state records to examine Saddam Hussein's reaction to US arms to sales to Iran during the Iran–Iraq War (the Iran/Contra scandal). These records show that ‘Irangate’ marked a decisive departure in Saddam's relations with the United States. Irangate reinforced Saddam's preexisting suspicions of US policy, convincing him that Washington was a strategic enemy that could not be trusted. Saddam concealed his anger to preserve a working relationship with the Reagan administration, but this episode nevertheless cemented his negative views of the United States and forged a legacy of hostility and mistrust that would inform his strategic calculus for years to come.