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National Interests: Priorities and Security
 

Synergy of the military and civilian production: A case study of the aircraft industries

Vol. 13, Iss. 1, JANUARY 2017

PDF  Article PDF Version

Received: 25 July 2016

Received in revised form: 22 August 2016

Accepted: 15 September 2016

Available online: 27 January 2017

Subject Heading: SUSTAINABLE DEVELOPMENT OF ECONOMY

JEL Classification: D24, O12, O14

Pages: 20-33

https://doi.org/10.24891/ni.13.1.20

Varshavskii A.E. Central Economics and Mathematics Institute, Russian Academy of Sciences, Moscow, Russian Federation
varshav@cemi.rssi.ru

Dubinina M.G. Central Economics and Mathematics Institute, Russian Academy of Sciences, Moscow, Russian Federation
mgdub@yandex.ru

Importance The research reviews how the military and civilian segments of the military-industrial sector interact and influence one another, illustrating companies operating in the aircraft industry.
Objectives The research identifies an increase (decrease) in performance indicators of leading aircraft companies in the most advanced countries when the percentage of civilian production rises (falls).
Methods The methodology implies an examination and modeling of cost effectiveness indicators of production of military and civilian machines in the leading aircraft companies of the most advanced nations.
Results The foreign aircraft companies were proved to see their performance indicators rise as civilian production increases within the entire output.
Conclusions and Relevance We found a considerable positive and synergistic effect on companies operating in the military-industrial sector when civilian production increases. It should be taken into account in steering the development of the national aircraft industry and other segments of the military-industrial sector. The should be a comprehensive approach, with State orders and other measures being made for national aircraft products.

Keywords: aircraft industry, labor productivity, efficiency

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