Frontiers in Finance and Economics is a UGC APPROVED International Journal of Research

What Lies Beneath? Who Owns British Defence Contractors And Does It Matter?

Derek Braddon, Jonathan Bradley
This paper presents the findings of research into the distribution of the rewards from capital used in defence production. Much existing research has examined the supply chain in the production of defence goods, but there have been few attempts to look at the ownership of suppliers. First, the paper examines two theoretical issues: why the identity of shareholders in defence contractors should have any economic or political significance, and whether the use of capital in defence industries should in principle be expected to be the same as that in any other industry. It then investigates the identity and ownership of the contractors concerned in 2003-4, using several case studies.  It finds that many of the largest suppliers to the UK government are foreign-owned or controlled, and it finds evidence of a surprising degree of American equity participation in major British contractors.
Keywords :Defence, corporate ownership, supply base; industry structure and conduct, JEL classification : D2, D4, L1, L2, L64.

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Frontiers in Finance and Economics

FRONTIERS IN FINANCE AND ECONOMICS with ISSN no. 1814-2044 Multi-Disciplinary Journal of Economic, Finance and Business and Management Sciences. Frontiers of Finance and Economics, a bi-Annual UGC Approved Journal. Send papers for publication to editor@ffejournal.org

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