How does the Kwajalein missile testing range affect the Marshall Islands economy?

The U.S. missile testing range on Kwajalein Atoll plays a significant role in the economy of the Marshall Islands. Its economic impact is primarily realized through two channels:

• Direct Revenue: The republic receives substantial income through the leasing of land to the United States for the operation of the missile testing range, as established under the Compact of Free Association.12
• Employment and Infrastructure: The range serves as a major source of employment for the local population. Along with the capital, Majuro, the presence of the base at Kwajalein acts as an urban magnet, offering modern amenities and jobs that draw residents from the outer islands. Additionally, specific funds have been established to improve living conditions on Ebeye, the island where many Marshallese workers employed at the range reside.12

Together with U.S. subsidies, these activities form the foundation of the republic's primary revenue sources.1