Defence-specific inflation – the Swedish perspective

Nordlund, Peter

doi:10.1080/10242694.2015.1096571

Cited by 7 publications

(5 citation statements)

References 6 publications

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“…Significant ICE is observed for Sweden in Nordlund's (2015) article especially when compared to recent international studies. The paper provides a detailed description of the Swedish defence inflation index and the associated economic and political consequences.…”

Section: Organizationmentioning

confidence: 85%

“…It covers contributions from diverse nations in both size and scope including Norway, Sweden, the United Kingdom (UK) and the United States (US). Key aspects of the inflation debate are covered in this special issue ranging from country specific experiences (Hartley 2015;Keating and Arena 2015;Nordlund 2015) to technical issues such as quality adjustment and price indexing (Horowitz, Harmon, and Levine 2015;Hove and Lillekvelland 2015).…”

Section: Organizationmentioning

confidence: 99%

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Special issue: defence inflation

Hartley

Solomon

2016

Defence and Peace Economics

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Section: Organizationmentioning

confidence: 85%

Section: Organizationmentioning

confidence: 99%

Special issue: defence inflation

Hartley

Solomon

2016

Defence and Peace Economics

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“…So far, there is an awareness of a study that describes how this rule is applied to the Swedish national security and defence sector (Nordlund, 2016).…”

Section: Discussionmentioning

confidence: 99%

Ministry of Defence expenditures impact on economic growth of Ukraine

KOVAL

2023

VISNYK MSS

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B a c k g r o u n d . With the start of the second stage of the Russian-Ukrainian war, the Government of Ukraine and its military command faced an objective examination of the results of years of efforts to develop Ukraine's national security and defence sector. At the same time as defence capability was being enhanced, economic performance was on the rise. This led us to test the hypothesis of whether the increased defence capability caused this growth. This study aims to clarify the relationship between military expenditures and economic growth in Ukraine. The object of the study is a consistent and long-term process of economic growth of the state along with an increase in the level of defence capability as a result of military expenditures in the context of financial support from the Ministry of Defence of Ukraine. Methods. Theoretical methods: analysis, synthesis, abstraction, generalisation, induction, deduction, explanation, classification. Empirical methods: hypothesis, observation, experiment, description. Results. This paper defines "military capabilities" and their relationship with military potential. It has been established that the ability to use military potential (military power/strength) is a military capability. Military expenditures are used to develop capabilities in the Ministry of Defence of Ukraine's system. Thus, allocating and redistributing expenditures for the army's needs is financial support. The armed forces' financial support drives the country's economic growth. To establish this fact, the leading indicators of military expenditures in the Ministry of Defence of Ukraine (from now on – MoD) were analysed and the indicator of economic growth – gross domestic product (from now – GDP) from 2012 to 2021. This period is crucial for Ukraine's national security, defence, and economic growth, as the basic principles of state defence policy were established during this time. This motivated us to analyse financial and defence indicators to determine their interrelationship. C o n c l u s i o n s . Two variables were defined as military expenditures and the GDP, where the first variable is independent and the second is dependent. A high correlation between military spending and economic growth in Ukraine was found by constructing a scatter plot, performing the relevant calculations, obtaining the data in an ANOVA table, setting up a regression line, and conducting null hypothesis tests.

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“…This ambition was later followed up by political statements that clearly emphasised that the trend towards bigger and more expensive fighter aircraft should be broken (Antvik 2009). Even if the Gripen aircraft did not fully curb the cost escalation, at least not considering acquisition costs, the rate of escalating acquisition costs compared to its predecessor was dramatically reduced (Nordlund 2016). Accordingly, we suggest that, for curbing cost escalation it is beneficial to give concept generation teams explicit directives to do so, as well as explicitly expressed cost constraints.…”

Section: Directives Cost Constraints and Better Cost Trading Are Helmentioning

confidence: 91%

Affordability Aspects in the Development of Defence Equipment: Case Studies of Concept Generation in the Defence Industry

Amann

Kihlander

Magnusson

2020

Defence and Peace Economics

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Cost escalation for many complex defence equipment is arguably not sustainable. Customer driven requirements have led to an exponential increase in costs by pushing frontiers of technology to support primarily incremental improvements of traditional equipment concepts. Accordingly, affordability has become a more discussed subject in defence acquisition. This paper addresses the process of generating complex defence equipment concepts. The purpose is to explore how affordability is managed in that process and to identify possible leads to how an unsustainable cost escalation for this type of equipment can be curbed. This is done by studying two cases of concept generation of future combat air equipment systems from a company process perspective. This applied micro perspective on cost escalation showed that none of the concepts generated in these two cases were assessed to curb the cost escalation. Further, the innovation model for the generated concepts, with only one notable exception, was incremental. Nevertheless, the empirical observations from these two cases offer leads on how to potentially foster a more innovative and affordability-oriented concept generation process for future defence equipment, as well as indicating avenues for future research.

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Defence-specific inflation – the Swedish perspective

Cited by 7 publications

References 6 publications

Special issue: defence inflation

Special issue: defence inflation

Ministry of Defence expenditures impact on economic growth of Ukraine

Affordability Aspects in the Development of Defence Equipment: Case Studies of Concept Generation in the Defence Industry

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