Despite a low volume of production at national levels, the European naval industry remains quite fragmented 25 years after the end of the cold war. Contrary to what might be expected from an industrial or budgetary perspective, neither cross-border consolidation nor cooperative programs have resulted in European restructuring. The sovereign nature of shipyards has led to the promotion of a domestically-centered industry transformation. Again, contrary to what might be expected, this appears to be a potentially sustainable approach due to the long-term relationship between navies and their domestic industrial partners. Even so, one can question the sustainability of the current economic model, reliant as it is on export contracts and insufficient margins to manoeuver.
{"title":"Against the odds: The evolution of the European naval shipbuilding industry","authors":"Renaud Bellais","doi":"10.15355/EPSJ.12.1.5","DOIUrl":"https://doi.org/10.15355/EPSJ.12.1.5","url":null,"abstract":"Despite a low volume of production at national levels, the European naval industry remains quite fragmented 25 years after the end of the cold war. Contrary to what might be expected from an industrial or budgetary perspective, neither cross-border consolidation nor cooperative programs have resulted in European restructuring. The sovereign nature of shipyards has led to the promotion of a domestically-centered industry transformation. Again, contrary to what might be expected, this appears to be a potentially sustainable approach due to the long-term relationship between navies and their domestic industrial partners. Even so, one can question the sustainability of the current economic model, reliant as it is on export contracts and insufficient margins to manoeuver.","PeriodicalId":43334,"journal":{"name":"Economics of Peace and Security Journal","volume":"12 1","pages":"5-11"},"PeriodicalIF":0.6,"publicationDate":"2017-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41620311","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article discusses the European military helicopter market. It first recalls historical antecedents in the structural development of the main helicopter programs that helped to consolidate the industry and then reviews the industry’s current major trends. A paradoxical situation is identified: While European countries presently are able to cope with both, the growing needs in helicopter capabilities and the maintenance of ageing fleets, no large helicopter programs for the future have been launched. Some uncertainties regarding how future helicopter procurement will be organized are identified. The current situation underlines the challenges that European states will face to maintain both industrial skills in the industry and sovereignty in military helicopter capabilities. A number of industry options are discussed: more exports, more cooperation, more dual use, and more reliance on support and service sales.
{"title":"The European military helicopter industry: Trends and perspectives","authors":"Josselin Droff","doi":"10.15355/EPSJ.12.1.20","DOIUrl":"https://doi.org/10.15355/EPSJ.12.1.20","url":null,"abstract":"This article discusses the European military helicopter market. It first recalls historical antecedents in the structural development of the main helicopter programs that helped to consolidate the industry and then reviews the industry’s current major trends. A paradoxical situation is identified: While European countries presently are able to cope with both, the growing needs in helicopter capabilities and the maintenance of ageing fleets, no large helicopter programs for the future have been launched. Some uncertainties regarding how future helicopter procurement will be organized are identified. The current situation underlines the challenges that European states will face to maintain both industrial skills in the industry and sovereignty in military helicopter capabilities. A number of industry options are discussed: more exports, more cooperation, more dual use, and more reliance on support and service sales.","PeriodicalId":43334,"journal":{"name":"Economics of Peace and Security Journal","volume":"12 1","pages":"20-27"},"PeriodicalIF":0.6,"publicationDate":"2017-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44415562","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article is an economic analysis of the main factors affecting the evolution of the European space industry. The critical role of the government is analyzed with regard to both military alliances and civilian intergovernmental collaboration. The analysis explores how moving from a pure public goods paradigm in collaborative projects toward a commercially-oriented, competitiveness-enhancing paradigm leads to duplication of effort and rivalries within the space agencies and other organizations. Drawing on the example of defense alliances such as NATO, the article illustrates cooperation challenges faced both at European and transatlantic levels as competition and rivalry result from inter-alliance specialization and the difficulties involved in the allocation of benefits.
{"title":"The European space-industrial complex: New myths, old realities","authors":"V. Zervos","doi":"10.15355/EPSJ.12.1.28","DOIUrl":"https://doi.org/10.15355/EPSJ.12.1.28","url":null,"abstract":"This article is an economic analysis of the main factors affecting the evolution of the European space industry. The critical role of the government is analyzed with regard to both military alliances and civilian intergovernmental collaboration. The analysis explores how moving from a pure public goods paradigm in collaborative projects toward a commercially-oriented, competitiveness-enhancing paradigm leads to duplication of effort and rivalries within the space agencies and other organizations. Drawing on the example of defense alliances such as NATO, the article illustrates cooperation challenges faced both at European and transatlantic levels as competition and rivalry result from inter-alliance specialization and the difficulties involved in the allocation of benefits.","PeriodicalId":43334,"journal":{"name":"Economics of Peace and Security Journal","volume":"12 1","pages":"28-36"},"PeriodicalIF":0.6,"publicationDate":"2017-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49456657","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-01-01DOI: 10.5771/0175-274X-2017-4-196
C. Brunner
{"title":"Von Selbstreflexion zu Hegemonieselbstkritik","authors":"C. Brunner","doi":"10.5771/0175-274X-2017-4-196","DOIUrl":"https://doi.org/10.5771/0175-274X-2017-4-196","url":null,"abstract":"","PeriodicalId":43334,"journal":{"name":"Economics of Peace and Security Journal","volume":"8 1","pages":"196-201"},"PeriodicalIF":0.6,"publicationDate":"2017-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84486989","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study employs SIPRI’s extended military expenditure dataset to estimate a dynamic panel analysis of Middle Powers’ defense posture. The dynamic approach, particularly the Auto Regressive Distributed Lag (ARDL) approach, permits simultaneous, but separate, assessment of short- and long-run effects of a particular variable on military expenditure. We verify the robustness of earlier findings on Middle Power nations’ defense posture. In particular, their military expenditure tends to an income elasticity of greater than one indicating that military power is, at least in part, a status good. In addition, Middle Powers react to threat variables that proxy global instability, such as nuclear power proliferation, and they use foreign aid as a complementary policy tool. Competing demands for funds lead to significant tradeoffs between military and nonmilitary government spending.
{"title":"A dynamic panel analysis using SIPRI’s extended military expenditure data: The case of Middle Power nations","authors":"M. Douch, B. Solomon","doi":"10.15355/EPSJ.11.2.45","DOIUrl":"https://doi.org/10.15355/EPSJ.11.2.45","url":null,"abstract":"This study employs SIPRI’s extended military expenditure dataset to estimate a dynamic panel analysis of Middle Powers’ defense posture. The dynamic approach, particularly the Auto Regressive Distributed Lag (ARDL) approach, permits simultaneous, but separate, assessment of short- and long-run effects of a particular variable on military expenditure. We verify the robustness of earlier findings on Middle Power nations’ defense posture. In particular, their military expenditure tends to an income elasticity of greater than one indicating that military power is, at least in part, a status good. In addition, Middle Powers react to threat variables that proxy global instability, such as nuclear power proliferation, and they use foreign aid as a complementary policy tool. Competing demands for funds lead to significant tradeoffs between military and nonmilitary government spending.","PeriodicalId":43334,"journal":{"name":"Economics of Peace and Security Journal","volume":"11 1","pages":"45-49"},"PeriodicalIF":0.6,"publicationDate":"2016-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66908511","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Using SIPRI’s new consistent database on military expenditure and employing a panel vector autoregression (PVAR) methodology, the article investigates the nexus between military expenditure and two key macroeconomic variables, namely growth rates and investment spending for the case of the EU15 countries over the period 1961–2014. The findings reported herein do not support the effective demand stimulation argument for military spending. Thus, they broadly confirm the results of earlier studies for the EU15 that used the previous version of the SIPRI dataset.
{"title":"Investment, growth, and defense expenditure in the EU15: Revisiting the nexus using SIPRI’s new consistent dataset","authors":"C. Kollias, Suzanna‐Maria Paleologou","doi":"10.15355/EPSJ.11.2.28","DOIUrl":"https://doi.org/10.15355/EPSJ.11.2.28","url":null,"abstract":"Using SIPRI’s new consistent database on military expenditure and employing a panel vector autoregression (PVAR) methodology, the article investigates the nexus between military expenditure and two key macroeconomic variables, namely growth rates and investment spending for the case of the EU15 countries over the period 1961–2014. The findings reported herein do not support the effective demand stimulation argument for military spending. Thus, they broadly confirm the results of earlier studies for the EU15 that used the previous version of the SIPRI dataset.","PeriodicalId":43334,"journal":{"name":"Economics of Peace and Security Journal","volume":"36 1","pages":"28-37"},"PeriodicalIF":0.6,"publicationDate":"2016-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66908499","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The Stockholm International Peace Research Institute’s military expenditure database is the only long-run, consistent dataset on military expenditure with global coverage. Even though SIPRI’s military expenditure data collection dates back almost to the organization’s beginning in 1966, until recently, consistent data series for most countries have only been available as from 1988 onward. As this article discusses, the history of SIPRI’s military expenditure project includes a number of breaks, the result of staff transitions and failures of record-keeping. As a result, reconstructing the data has been necessary on a number of occasions. The most recent such effort has now succeeded in extending the data backward from 1988 for the great majority of countries—in most cases at least to the 1960s, and for some countries as far back as 1959. This article sets out this history of advances, setbacks, and reconstructions and the methodologies used. In particular, the results of the latest reconstruction effort are presented, and thoughts for future developments laid out.
{"title":"Snakes and ladders: The development and multiple reconstructions of the Stockholm International Peace Research Institute’s military expenditure data","authors":"Sam Perlo-Freeman, Elisabeth Sköns","doi":"10.15355/EPSJ.11.2.5","DOIUrl":"https://doi.org/10.15355/EPSJ.11.2.5","url":null,"abstract":"The Stockholm International Peace Research Institute’s military expenditure database is the only long-run, consistent dataset on military expenditure with global coverage. Even though SIPRI’s military expenditure data collection dates back almost to the organization’s beginning in 1966, until recently, consistent data series for most countries have only been available as from 1988 onward. As this article discusses, the history of SIPRI’s military expenditure project includes a number of breaks, the result of staff transitions and failures of record-keeping. As a result, reconstructing the data has been necessary on a number of occasions. The most recent such effort has now succeeded in extending the data backward from 1988 for the great majority of countries—in most cases at least to the 1960s, and for some countries as far back as 1959. This article sets out this history of advances, setbacks, and reconstructions and the methodologies used. In particular, the results of the latest reconstruction effort are presented, and thoughts for future developments laid out.","PeriodicalId":43334,"journal":{"name":"Economics of Peace and Security Journal","volume":"11 1","pages":"5-13"},"PeriodicalIF":0.6,"publicationDate":"2016-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66908570","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The aim of this article is to shed light on the fiscal consequences of economic growth in the EU15 countries by disentangling military and civilian government expenditure. Given the newly available extended dataset on military expenditure provided by the Stockholm International Peace Research Institute (SIPRI), a comparison can be made to older SIPRI data. Using growth theory and panel data analysis, the results show that public spending is growth detrimental and military expenditure is less harmful than nonmilitary, civilian spending. The new data offer a richer pattern of results.
{"title":"Military expenditure and economic growth in the European Union: Evidence from SIPRI’s extended dataset","authors":"J. Malizard","doi":"10.15355/EPSJ.11.2.38","DOIUrl":"https://doi.org/10.15355/EPSJ.11.2.38","url":null,"abstract":"The aim of this article is to shed light on the fiscal consequences of economic growth in the EU15 countries by disentangling military and civilian government expenditure. Given the newly available extended dataset on military expenditure provided by the Stockholm International Peace Research Institute (SIPRI), a comparison can be made to older SIPRI data. Using growth theory and panel data analysis, the results show that public spending is growth detrimental and military expenditure is less harmful than nonmilitary, civilian spending. The new data offer a richer pattern of results.","PeriodicalId":43334,"journal":{"name":"Economics of Peace and Security Journal","volume":"11 1","pages":"38-44"},"PeriodicalIF":0.6,"publicationDate":"2016-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66908504","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article first compares old with newly updated and extended SIPRI military expenditure data for Greece, Portugal, and Spain. Using the new data to confirm or reject earlier findings, it then replicates a Solow growth model application employed in a 2012 study by Dunne and Nikolaidou. In addition, the article provides new evidence on the military expenditure–economic growth nexus for these three countries using the extended data that now cover the post-global financial crisis and European debt crisis years. The use of the new SIPRI data does not lead to rejection of the earlier findings for Greece and Portugal but does reject the formerly negative and statistically significant effect of military burden on growth for the case of Spain.
{"title":"Greece, Portugal, Spain: New evidence on the economic effects of military expenditure using the new SIPRI data","authors":"E. Nikolaidou","doi":"10.15355/EPSJ.11.2.20","DOIUrl":"https://doi.org/10.15355/EPSJ.11.2.20","url":null,"abstract":"This article first compares old with newly updated and extended SIPRI military expenditure data for Greece, Portugal, and Spain. Using the new data to confirm or reject earlier findings, it then replicates a Solow growth model application employed in a 2012 study by Dunne and Nikolaidou. In addition, the article provides new evidence on the military expenditure–economic growth nexus for these three countries using the extended data that now cover the post-global financial crisis and European debt crisis years. The use of the new SIPRI data does not lead to rejection of the earlier findings for Greece and Portugal but does reject the formerly negative and statistically significant effect of military burden on growth for the case of Spain.","PeriodicalId":43334,"journal":{"name":"Economics of Peace and Security Journal","volume":"11 1","pages":"20-27"},"PeriodicalIF":0.6,"publicationDate":"2016-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66908453","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article compares results of our 2015 study of the effect of military expenditure on economic growth, 1988–2010, with results using an additional 28 years of data provided in the newly revised and extended SIPRI dataset, 1960–2014. When the additional data points are added, we find no substantive differences and confirm the statistically significant negative effect of military expenditure on growth reported in our prior research. Using the same estimation process, there is no evidence of a structural break in the time series. Considering nonlinearity and heterogeneity, the estimates using the new data for ninety-seven countries are remarkably consistent with the earlier results and, overall, are very similar in sign and statistical significance, and many of the coefficients are larger (more adverse) than before. The new data provide valuable extra information and support for the original findings.
{"title":"Military expenditure and economic growth, 1960–2014","authors":"J. Dunne, Nan Tian","doi":"10.15355/EPSJ.11.2.50","DOIUrl":"https://doi.org/10.15355/EPSJ.11.2.50","url":null,"abstract":"This article compares results of our 2015 study of the effect of military expenditure on economic growth, 1988–2010, with results using an additional 28 years of data provided in the newly revised and extended SIPRI dataset, 1960–2014. When the additional data points are added, we find no substantive differences and confirm the statistically significant negative effect of military expenditure on growth reported in our prior research. Using the same estimation process, there is no evidence of a structural break in the time series. Considering nonlinearity and heterogeneity, the estimates using the new data for ninety-seven countries are remarkably consistent with the earlier results and, overall, are very similar in sign and statistical significance, and many of the coefficients are larger (more adverse) than before. The new data provide valuable extra information and support for the original findings.","PeriodicalId":43334,"journal":{"name":"Economics of Peace and Security Journal","volume":"11 1","pages":"50-56"},"PeriodicalIF":0.6,"publicationDate":"2016-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66908590","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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