Disarmament and development appear to exert simultaneous relationship, each being at the same time both the cause and the result of the other. Conflicts are not confined to arms production, but also find some expression in economic, political and cultural domination. There are three main forms of disarmament with various economic effects (destruction of military stocks, prohibition of the production of specific weapons, reduction of Military expenditure). Moreover the analysis of the economic determinants of military expenditure is essential in order to understand how to work efficiently with a disarmament process. Finally, what are the main methods for the analysis of the economic effect of a disarmament process (theoretical deductive analysis, mathematical models, simulation, evaluation of structural and reduced forms, Computational General Equilibrium Model, Input-Output analysis, Historical and Case studies)