The Aerospace Industry: Problems and Policies

  • Keith Hartley
Part of the Studies in Industrial Organization book series (PCBS)


Aerospace projects are repeatedly confronting governments with classic choice problems. Military aircraft and missiles have to be purchased for defence, and civil aircraft are required by a nation’s airlines. Should governments and airlines “shop around” for their aerospace equipment, acting as competitive buyers and purchasing from the lowest-cost suppliers? Such a policy is less likely where there exists a substantial domestic aerospace industry. Within Europe, the major aerospace industries are located in the UK, France, West Germany, Italy, the Netherlands and Sweden. Even without an aerospace industry, a nation might wish to use its orders to manufacture under licence, to “co-produce” or to acquire “offsets” which provide both domestic jobs and technology. An example is the co-production programme for the American F16 military aircraft (General Dynamics) involving Belgium, Denmark, Holland, Norway and the USA.


Aerospace Industry Joint Project Military Aircraft Procurement Policy American Firm 
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Copyright information

© Martinus Nijhoff Publishers bv 1981

Authors and Affiliations

  • Keith Hartley

There are no affiliations available

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