The Economics of Offsets

Defence Procurement and Coutertrade

By: Stephen Martin

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Hardcover | 9 February 1996 | Edition Number 1

At a Glance

Hardcover
432 Pages

Dimensions(cm)
23.4 x 15.6 x 2.39

Hardcover

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Offsets, or work-sharing arrangements, are frequently requested by governments when buying foreign defence equipment. Under an offset the vendor agrees to place work to a set value with firms in the buying country. Although popular, controversy surrounds their impact. Some claim that offsets create jobs and enhance the defence industrial base. Others argue that offset work would have been won without the offset or that it is low technology work which ceases once the vendor has fulfilled its offset obligation. Somewhat contradictorily, defence exporters with large offset obligations are often criticised for transferring work (jobs) and technology to potential foreign competitors.
Despite their growth (which is outlined and analyzed in the book) the claims and counter-claims that surround offsets have not been subjected to critical scrutiny by economists. This book fills that gap. It brings together a team of internationally renowned specialists to document and evaluate the economic impact of several countries' offset policies. The authors also consider what further information is required for more informed public policies towards offsets.
This book is designed for those studying defence economics, industrial economic policy, defence policy, business studies and international trade. It will also be of interest to practitioners and policy-makers in both government and industry.

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