I would expect the Empire to be pretty well-off. We have the most reserves due to being the oldest society, and the most food and minerals in the cluster, which we're selling to our beloved friends in the State and possibly to the Federation and Republic (through the Kingdom). I would imagine the ships and weapons used by the State Protectorate are primarily built out of materials supplied by the Empire, or built and sold directly by Imperial Armaments.
And of course, the Empire already has a very military-focused culture, and thus already has the infrastructure for constructing and maintaining a large armed force. It likely didn't need to do much work at all to convert into a war economy.
As the war grew more intense, the areas directly in the line of fire, especially the Bleak Lands, grew more and more destitute. However, as Holders fled these areas, they brought their many slaves and wealth to the core regions of the Empire, bolstering it as a whole. In general, while the Empire remains economically down overall from its heights prior to the breakout of the Empyrean War, its economy is generally considered strong by most analysts.
-Economy of the Amarr Empire, EVElopedia
The only economy stronger than the Empire's right now is the Federation, and probably only because it's more efficient and more open to outside trade.
Pre-TEA, the Amarr Empire was very much behind the military technological power curve. While thanks to CONCORD, they,the Gallente and Minmatar had access to any new military technology that say, the Caldari might have developed they didn't have the infrastructure to upgrade their ancient fleet. They had ships in active service that had been built hundreds of years before. This is a similar situation that the United States was in during the Cold War. The U.S. needed advanced guidance chips for all the missiles they wanted and while American Universities were at the bleeding edge of micro chip research USA couldn't pump the chips out fast enough because they didn't have the factories and trained labor in place to mass produce semiconductors. The Japanese did, and this is the bases for the the famous essay "The Japan That Can Say No: Why Japan Will Be First Among Equals." Basically some Japanese businessmen believed Japan had America (and the world) by the balls and should stand up to them.
I believe this was very similar to the situation that existed between the Amarr and Caldari for a couple of reasons. First; Kaalakiota, Wiyrkomi, Lai Dai and Ishukone are all primarily military RnD and producers. They design new weapons and sell them. Second; once upon a time we had many news articles that told us Kaalakiota, Wiyrkomi and Lai Dai in particualr were heavily involved with upgrading the Amarr military to modern standards. Third; Lai Dai, who lean more toward RnD and less toward production, had become major share holders in Viziam, Carthum, and Khanid Innovations (all of the Amarr RnD corps) and was loaning them scientists, technicans and money to bring them up to the standard of a modern RnD companies. Lastly, many of the Amarr military stations have one of one or more of the above Caldari corp's stations near by. I think Kaalakiota only has one Station in the State and the majority of the rest are in the Empire. Combining these things paints a picture of were a the majority of Amarr's military RnD is done by the State and a much if not most of the shipyards capable of refitting old ships and building new ones within the boarders of the Amarr Empire are actually in the Caldari Stations.
For a long time ingame Amarr ships were much better for PvP than Caldari ships, and my character believed this was because the bulk of Caldari research efforts had for years gone to making Amarr ships better and the expense of Caldari ships. This was supported by an article in which Wiyrkomi were heavily involved in RnD and production of Armor resistance modules and that hydromagnetic physics is the field of science involved in both Caldari shields and Amarr armor resistance modules.
I also find it amusing that Caldari ships are dominating the PvP scene from FW to null sec after a period of time when the Caldari might have refocused on their own ships.
First, I don't think that game mechanics are a good argument for what is happening background wise: The aim of game mechanics is to have all factions on an equal footing and I strongly doubt that they decide to put inequalities in there because "the Caldari research the Amarr ships".
Second, I don't think that the Empire lets the State run all the military production. Yes, the State corps were and are involved in Amarrian military RnD, but by no means do we have reason to think that they are doing
all of it. Also, one shouldn't forget who was handing out massive amounts of money to keep State economy working, no?
Third, the Amarr really didn't have an economy nor a military suited for
war for a very long time, which practically is since the conquest of Athra, up until now. Yes, Amarr had many conflicts in their history, armed conflicts, too, but usually they were in numbers and technology so superior to the cultures they subjugated, that they didn't really have to wage war, because there was fundamentally no real resistance. (It's called the
unchallenged era for a reason.) This is even true, in a way, for the Matari. Only when the Amarr met the Gallente they discovered someone who was on an equal footing with them. And what did they do?
"Faced with an entity of unknown strength with at least some technological superiority to them, the Amarr immediately put out the call to its ships to take a diplomatic approach to further contact. The Empire sent out its best orators and linguists to open contact with the Gallente." Amarr-Gallente contactDiplomacy. The contact between the Caldari and the Amarr wasn't any more militaristic.
Lastly, the Amarr are quite isolationist, have little trade with outsiders, even the Caldari, and their economy suffers somewhat from that in regard to growth, but on the other hand it means they are quite self-sufficent. I'm quite sure the Empire doesn't have to care that much what happens outside it's borders economically, as it has little effect on it's own. (
"The economy is highly insular, with lower rates of import and export than the other major empires of New Eden, though recent measures have opened the borders somewhat to trade.")
So, this said, I don't think that the Empire really has a strong military culture, the Federation and State, both at odds for quite some time, are much stronger in that regard, for their experience in fighting someone on roughly equal footing alone. The good thing for the Empire is that it's not very dependent on outside trade or high-trained labor so that makes the transition to a war economy easier. (Not that I think any of the 4 nations really has a war economy right now). Also, the Caldari depend on Amarr resources just as much as Amarr seek Caldari help in their RnD projects. The idea that this is a one-sided deal is quite off, imho.