State economic security

Methodological basis for determination economic feasibility of military technology export

Economic Annals-XXI

Economic Annals-ХХI: Volume 142, Issue 7-8(1), Pages: 16-19

Citation information:
Behma, V., & Schehliuk, B. (2014). Methodological basis for determination economic feasibility of military technology export. Economic Annals-XXI, 7-8(1), 16-19. https://ea21journal.world/index.php/ea-v142-04/

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Vitaliy Behma
D. Sc. (Economics),
Associate Professor,
Head of Department for Defense Strategies and Military-Technical Policy,
The National Institute for Strategic Studies under the President of Ukraine
7-a Pyrohov Str., Kyiv, 01030, Ukraine
begma@niss.gov.ua

Bohdan Schehliuk
Post-Graduate Student,
The National Institute for Strategic Studies under the President of Ukraine
7 Pyrohov Str., Kyiv, 01030, Ukraine
shbp87@gmail.com

Methodological basis for determination economic feasibility of military technology export

Abstract. Аnalysis of the international market of armaments and military equipment shows that the products manufactured by the military-industrial sector of the Ukrainian economy are competitive on the international market of armaments and military equipment. Many experts point out a significant research and technical potential of the Ukrainian military technologies. However, under the influence of economic and non-economic factors, the potential of many existing military technologies is not used in full. Every year, much of the Ukrainian military technologies lose their novelty and relevance. Under such circumstances, a science-based increase in the export of military technology may be a promising new area for the military industry of Ukraine development.

The economic feasibility of the military technologies export is a way of increasing income, a form of struggle for commodity markets and a tool for expansion of commodity export for the exporter. The economic feasibility of the military technology export should be determined with due regard to possible alternative uses for that technology. The authors analyze the local and international experience in the area of military technology export, showing the advantages of the science-based increase in such export. The criteria to be met by the methodological basis for the economic feasibility determining of the military technologies export have been set. The methods of economic analysis which are the most adapted to the studies have been analyzed. A methodology of the economic feasibility of the military technologies export determining has been developed. An important advantage of the proposed methodology is that the focus is given to the military technology’s export economic feasibility assessment at different possible export capabilities by several important parameters of the analysis comparison.

Keywords: Military Industry; Military Technology; Export; Economically Feasible Market Value of Technology; Economically Feasible Export Value

JEL Classіfіcatіon: C13; C52; D43; F17; F19

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Received 18.05.2014

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