Citation

Levine P, Mouzakis F, Smith R. Def. Peace Econ. 2000; 11(3): 505-531.

Copyright

(Copyright © 2000, Informa - Taylor and Francis Group)

DOI

10.1080/10430710008404963

PMID

unavailable

Abstract

The possibility of domestic production raises a difficulty for arms export control measures, since embargoes, by raising the effective price of imports, increase the incentive for domestic production. We address this issue by developing a partial equilibrium model of the international arms market We compare three arms export regimes involving the exporters of high-technology arms, with a particular focus on the effect of emerging domestic production: laissez-faire trade, the uncoordinated regulation of exports and a producer cartel consisting of coordinated regulation. The main conclusion is that the possibility of domestic production significantly changes the nature of these stylized export regimes.