Sectoral Composition and Spatial Distribution of Department of Defense Services Procurement∗

∗I wish to thank Drs. J. C. Archer, F. M. Davidson, and R. H. Stoddard for their aid in developing this research. I am also grateful to J. Schumacher, J. Haworth, the editor, and the two anonymous reviewers for their constructive and helpful criticism.

The purpose of this research is to analyze the composition and distribution of Department of Defense (DOD) services procurement. The results indicate producer services comprise 53% of DOD services outlays. Defense expenditures for services are particularly important in the Washington, D.C., region and in states that either produce weapons or house defense-related R&D facilities. Defense expenditures are providing impetus to service sector growth in Virginia and, simultaneously, are providing the initial stimulus for development of producer services in states such as New Mexico.

Key Words:

• defense procurement
• producer services
• regional development

Notes

∗I wish to thank Drs. J. C. Archer, F. M. Davidson, and R. H. Stoddard for their aid in developing this research. I am also grateful to J. Schumacher, J. Haworth, the editor, and the two anonymous reviewers for their constructive and helpful criticism.