Exploring the financial benefits of U.S. arms export production
Yeung, Andrew A.
Yoho, Keenan D.
Arkes, Jeremy A.
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This research examines the role of arms export production in achieving financial cost savings to the U.S. Department of Defense (DoD). A review of three theoretical benefits, identified by arms trade scholars, that DoD enjoys as a result of arms export production shows that there is some merit to the claim that unit costs may be lowered as a result of exports. Using the F-16 fighter aircraft as a case study, this research employs financial cost analysis using cost improvement curves to estimate the extent to which DoD benefitted in terms of reduced per-unit costs through concurrent export production. This research makes a significant contribution to the cost analysis and arms exports literature by quantifying commonly purported financial benefits attributable to arms export production.
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