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A Study on the Economic Analysis of the Defense Acquisition Projects -Focued on ○○ Guided Missile-

국방획득사업 경제성 분석에 관한 연구 -○○유도무기사업 사례를 중심으로-

  • Received : 2018.08.17
  • Accepted : 2018.10.05
  • Published : 2018.10.31

Abstract

Recently, it is expected to significantly increase the defense budget by acquiring large-scale weapons systems to enhance defensive capabilities. In order to secure funds needed to acquire such weapons systems, it is necessary to improve the efficiency of the defense budget. In addition, interest in economic factors affecting the domestic economy such as export opportunities and employment creation are increasing, as well as budget reduction of the defense acquisition business. In order to respond to these demands, this study conducted cost- benefit analysis and examined economic ripple effects in the implementation of defense procurement projects. However, research on economic analysis methodology considering characteristics of defense acquisition projects is still in its early stage. This study proposes a methodology to analyze the economic feasibility of defense acquisition projects and conducted a case study on the economic feasibility of the ${\bigcirc}{\bigcirc}$ guided missile project which is being prepared against local provocation. The proposed economic analysis method provides the cost-effectiveness analysis that has been performed in many weapon system acquisition projects in connection with the more general cost-benefit analysis method. This study contributes to the establishment of an improved theoretical methodology for weapon system acquisition projects.

Keywords

Defense Acquisition Program;Economic Analysis;Benefit;Cost-Benefit Analysis;Net Present Value

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