TY  - JOUR
PY  - 1993//
TI  - Defence research and development, crowding-out and the peace dividend
JO  - Defence economics
A1  - Buck, David
A1  - Hartley, Keith
A1  - Hooper, Nick
SP  - 161
EP  - 178
VL  - 4
IS  - 2
N2  - Defence R&D is a controversial subject. Critics argue that it “crowds-out” valuable civil R&D expenditure and drains the civil economy of qualified scientists and engineers (QSEs). This paper assesses the evidence for crowding-out in the UK. Cointegration techniques are used to test whether there is a negative causal relationship between public defence and civil R&D expenditure. Because the manpower debate has been hampered by the lack of official statistics we develop estimates of numbers of QSEs employed on defence R&D in UK industry over the period 1975-92. Turning to the “Peace Dividend”, our results suggest that a 10% cut in UK defence equipment expenditure will reduce employment levels by 6%. We conclude that in the absence of a negative causal relationship between public defence and civil R&D expenditure there may be a role for public policy in aiding the absorption of displaced defence QSEs into the economy.<p /> 
LA  - 
SN  - 1043-0717
UR  - http://dx.doi.org/10.1080/10430719308404757
ID  - ref1
ER  -