Sectoral effects of reductions in NATO military expenditures in the major industrialized and developing countries
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Date
1992-01
Journal Title
Journal ISSN
Volume Title
Publisher
Institute of Public Policy studies , Michigan
Abstract
We use the Michigan model of world production and trade to assess the sectoral effects of: (1) a 25% unilateral reduction of military expenditures in the individual NATO countries and (2)a 25% multilateral reduction of military expenditures in all of the NATO countries combined. Our principal findings suggest that the overall effects of the unilateral and multilateral reductions are not substantial and that the results of the two reductions are qualitatively similar. The sectoral results, which are also broadly similar in the two experiments, suggest that sectoral such as metal products, durable goods, and community, social and personal services might be in need of transitional adjustment assistance for displaced workers in the event that the reductions in military expenditures would in fact be carried out.
Description
Keywords
NATO military expenditures, Developing countries