Dual-use products export multipliers with the indirect effects

Abstract

The micro–macro link is provided for the impact of the dual-use defence-civilian exports of products and services on the Slovenian economy. The unique firm-level data on the dual-use export is integrated in the symmetric 60 groups of activities input–output tables. The classification of the economic activities is used to integrate data on the firm-to-firm dual-use export transactions in the symmetric input–output coding system to avoid the double counting. The input–output modelling approach is used for the measuring of the direct input–output flows and the dual-use products export multipliers with the indirect effects. The direct and indirect effects are analysed by the economic activities, technological intensity of the products and services, and statistical regions in Slovenia. Comparisons with alternative non dual-use high tech are analysed by economic activities in terms of value-added and labour productivity. The dual-use export is associated with high technologically intensive suppliers and sub-suppliers of defence-civilian goods and services. The empirical estimations can serve as a guide in questions of comparing with alternative in economic policy design when investigating trade-offs between allocation of expenditures for defence equipment and their opportunity costs for non dual-use of high tech products and services.