Citation

Fonfría A, Correa-Burrows P. Def. Peace Econ. 2010; 21(2): 177-192.

Copyright

(Copyright © 2010, Informa - Taylor and Francis Group)

DOI

10.1080/10242690903569007

PMID

unavailable

Abstract

The traditional view of the defence industry obtaining large profits from contracts with the Ministry of Defence relies on several assumptions. Among these are the use of such arrangements as an instrument of industrial policy, the strong market power enjoyed by prime contractors, and the inefficiency encouraged by the sector. The findings show that defence contracts have a positive effect on profits, as well as the prizes for innovation and the market power enjoyed by some defence subsectors.