We study in detail gaugino condensation in globally and locally supers
ymmetric Yang-Mills theories. We focus on models for which gauge-neutr
al matter couples to the gauge bosons only through nonminimal gauge ki
netic terms, for the cases of one and several condensing gauge groups.
Using only symmetry arguments, the low-energy expansion, and general
properties of supersymmetry, we compute the low energy Wilson action,
as well as the (2PI) effective action for the composite classical supe
rfield U=[Tr (WWproportional to)-W-proportional to], with W-proportion
al to the supersymmetric gauge field strength. The 2PI effective actio
n provides a firmer foundation for the approach of Veneziano and Yanki
elowicz, who treated the composite superfield, U, as a quantum degree
of freedom. We show how to rederive the Wilson action by minimizing th
e 2PI action with respect to U. We determine, in both formulations and
for global and local supersymmetry, the effective superpotential, W,
the non-perturbative contributions to the low-energy Kahler potential,
K, and the leading higher supercovariant derivative terms in an expan
sion in inverse powers of the condensation scale. As an application of
our results we include the string moduli dependence of the super- and
Kahler-potentials for simple orbifold models. (C) 1996 Academic Press
, Inc.