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Regional Employment Growth and Defense Spending.
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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The purpose of this thesis is to study how a states growth or decline in employment is related to Department of Defense expenditures in that state. This analysis looks not only at the impact of total DOD expenditures on employment, but explores the effects of various categories of defense outlays such as military and civilian pay. Prime contract awards for procurement, services, research and development, and construction were included as well. The scope of the thesis was also broadened by considering the impact of defense spending on employment in various industries i.e., manufacturing, services, and wholesale and retail trade as on total employment. The analysis was conducted by regressing an econometric model using as input cross sectional data from the 48 contiguous states. The results indicated that defense spending is an important part of regional growth.
APPROVED FOR PUBLIC RELEASE