Citation

Birdi A, Dunne P, Saal DS. Def. Peace Econ. 2000; 11(4): 597-613.

Copyright

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

DOI

10.1080/10430710008404969

PMID

unavailable

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.