Potential and actual arms production: Implications for the arms trade debate

In this paper I develop indices and rankings of potential and actual arms production for about one hundred and fifty countries for data pertaining to the early to mid-1990s. The countries' ranked indices are then compared. I find evidence that countries that can produce arms (potential) do produce arms (actual). I also compare the current findings to findings published nine years ago, pertaining to potential and actual arms production in developing nations for the early 1980s. A number of countries then having the potential to produce arms have, in fact, become major arms producers ten years later. The results presented in this paper carry policy implications for the arms trade debate: shall policymakers continue to focus on arms supply restriction and continue to ignore the increasing capacity of developing nations to self-supply their arms demand?