DEFENSE SPENDING CUTS AND REGIONAL ECONOMIC-IMPACT - AN OVERVIEW

The end of the cold war allows the nation to cut defense spending subs tantially, perhaps to the lowest level in 40 years. As the largest cat egory of federal spending, military spending has had a significant imp act on the spatial distribution of economic activity in the United Sta tes. Some states and communities will feel the pinch of reduced defens e dollars more than others as the military cuts spending on weapons sy stems, closes bases, and restructures R&D spending. In this article I examine the spatial implications of defense spending cuts. After first discussing the spatial concentration of defense spending, I look at t he methods used to estimate the location of defense spending and propo se a modified method of measurement. I then examine the current distri bution of defense industry and Department of Defense employment and as sess the regional and state impacts of reduced defense spending.