ABSTRACT
This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book provides a survey of the theoretical linkages between defense expenditures and economic growth. It presents theoretical model of the determination of the effects of defense spending and technological change upon economic growth. The book investigates relationship between defense expenditures and employment for 14 Organization for Economic Cooperation and Development countries. It suggests that Soviet system was unlikely to continue even in the absence of military pressure from the West. The book discusses what to expect from a stable world peace and describes the sensitivity of state employment to defense-related industries. It analyses the possible sectoral impacts of a "peace dividend" on trade and employment for the United States (US). The book examines the effects of projected declines in US defense spending on productive capacity as well as the contribution of both defense and non-defense research and development to productivity growth.
