The defense industry in an age of austerity

Authors

  • Ron Smith

DOI:

https://doi.org/10.15355/epsj.8.1.18

Keywords:

BAE, EADS, defense industry, military budgets

Abstract

Reductions in military expenditure will generate pressures to restructure the defense industry. This article explores the implications of a more peaceful evolution of military expenditure for the economic structure of this industry. For example, since military expenditure and defense industry concentration have moved in opposite directions in the past, future cuts in such spending might be expected to lead to a more concentrated industry. Although eventually thwarted in 2012, the proposed merger of defense industry giants BAE and EADS – which would have created the world's largest defense firm – is discussed in some detail as a potential harbinger of defense consolidation to come.

References

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Published

2013-04-22

How to Cite

Smith, R. (2013). The defense industry in an age of austerity. The Economics of Peace and Security Journal, 8(1). https://doi.org/10.15355/epsj.8.1.18

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