Citation

Ratner J, Thomas C. Defence economics 1990; 2(1): 57-68.

Copyright

(Copyright © 1990, Informa - Taylor and Francis Group)

DOI

10.1080/10430719008404678

PMID

unavailable

Abstract

This paper examines both the concept of the defence industrial base and operational measures of the concept that other analysts have used. It develops criteria of adequacy of the defence base and uses them to assess the merits of the operational measures. From this evaluation, the paper concludes that the defence base concept misdirects policymakers' attention and may bias them toward selecting “supplier-switching” policies (such as subsidies for domestic firms) that may be inefficient relative to the alternatives.

In addition, the paper isolates three determinants of the vulnerability to supply disruptions caused by buying defence goods from foreign firms. It analyzes their implications for optimal procurement, and discusses policy options for decreasing the extent of vulnerability to supply disruptions.