The impact of arms production on the South African manufacturing industry

Alvin Birdi, Paul Dunne, David S. Saal

Research output: Contribution to journalArticle

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.
Original languageEnglish
Pages (from-to)597-613
Number of pages17
JournalDefence and Peace Economics
Volume11
Issue number4
DOIs
Publication statusPublished - 2000

Keywords

  • arms production
  • government spending
  • manufacturing
  • panel data

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