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ИД «Финансы и кредит»






National Interests: Priorities and Security

Economic effects of defense industry projects

Vol. 17, Iss. 11, NOVEMBER 2021

Received: 12 July 2021

Received in revised form: 30 July 2021

Accepted: 16 August 2021

Available online: 15 November 2021


JEL Classification: L60, O12, O22

Pages: 2112–2132


Ivan V. NEVOLIN Central Economics and Mathematics Institute RAS (CEMI RAS), Moscow, Russian Federation


Oksana V. TEVELEVA Central Economics and Mathematics Institute RAS (CEMI RAS), Moscow, Russian Federation


Subject. This paper discusses the assessment of economic effects of project implementation in the defense industry.
Objectives. We investigate economic effects in the defense industry from the bottom, i.e. we calculate methods for analyzing specific project in specific conditions.
Methods. The study rests on the rules for licensed trade, tax and accounting practices.
Results. We offer tables to assess the effect of job creation, license and tax payments in international transactions.
Conclusions. The economic effect of defense projects is very ambiguous, as it depends on the country, the existence of the national defense industry, and indicators in question. Given the high interest to defense technologies in the military technology recipient country, it is possible to remove technology transfer transactions from the general regulation, and create special conditions for projects implementation.

Keywords: defense industry, socio-economic impact, security economy


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Vol. 17, Iss. 11
November 2021