Systematic Literature Review on the Determinants of Demand and Supply at the Combat Aircraft Market

ABSTRACT Through a systematic literature review of 42 recent peer‐reviewed empirical studies of international arms markets, this paper examines the determinants of supply and demand for manned fixed‐wing combat aircraft in the post–Cold War era. This literature review distinguishes more than 80 different determinants related to either the international system interaction, an international state or the aircraft offered. The determinants can be related to the main characteristics of the market, namely, security, economics and normative values. Measurable effects are only visible for security and economic determinants. Normative factors appear to play a rudimentary role across the board, although they can be found to be significant in individual studies. One conclusion that can be drawn is that the most commonly studied determinants are not those with the greatest impact. In addition, it is important to note that all but a few of the publications analysed do not address the difference in market power between a producing and a supplying (reselling) state.