Boom in the weapon production in Czechoslovakia in the 1930s

The position and history of the Czechoslovak Republic played a key role in its decision to focus on the weapon industry during the interwar period. Given the unstable situation in the newly emerged countries in the Central European region and with respect to the tradition of a heavy-weapon production, Czechoslovakia began to produce arms on a much larger scale. The increasing armament in 1930s was not even stopped by the Great Depression. Furthermore, weapon production helped the country to report higher exports and boosted the otherwise stagnating economy. The boom in the weapon production came during 1934-1938. Due to the quality of Czechoslovak arms and the high demand for them abroad, the Czechoslovak total export showed at least a slight increasing trend during this period. Nevertheless, large public expenditures in this sector had to be covered by augmenting public debt and increased tax rates