Work

The Role of Federal Military Spending in the Timing of the New England Employment Turnaround

Year: 1988

Type: article

Abstract: ABSTRACT This paper examines the role of military spending in the recent economic revival of New England, particularly the region's turnaround in employment growth. The long-term re structuring of New England's economy after World War II in terms of industry mix and labor costs positioned the region for a turnaround. We argue that the precipitating factor in the liming of the was the significant increase starling in the late 1970s in federal military purchases of durable goods from [lie region's high-technology manufacturing industry. New England benefited disproportionately from the military buildup because of the region's concentration in high-technology manufacturing industries producing defense-related goods. The labor-intensive nature of high-technology industry has resulted in a large portion of the money received from defense purchases going to labor and producing important regional multiplier effects in sectors other than manufacturing.

Source: Papers of the Regional Science Association

DOI: 10.1111/j.1435-5597.1988.tb01163.x

Authors: Richard A. Barff, Prentice L. Knight

Institutions: Dartmouth College, Georgia Institute of Technology

Language: English

Topic: Defense, Military, and Policy Studies

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $2,740