| ID | 155842 |
| Title Proper | Interrelationship between defence spending, public expenditures and economic growth |
| Other Title Information | evidence from China |
| Language | ENG |
| Author | Zhao, Liming ; Zhao, Liang ; Chen, Bing-Fu |
| Summary / Abstract (Note) | This study examines the relationship between defence spending, other components of public spending and economic growth for the 1952–2012 period in China using Granger causality tests and generalised impulse response functions based on vector error correction models. The empirical results reveal two long-run equilibrium relationships among the variables and also show that defence spending inversely and unidirectionally Granger impacts economic growth. Furthermore, empirical findings point to a trade-off relationship between defence spending and public expenditures in China. From a policy maker’s perspective, the findings reported herein imply that a decrease in defence spending may stimulate economic growth. |
| `In' analytical Note | Defence and Peace Economics Vol. 28, No.6; Dec 2017: p.703-718 |
| Journal Source | Defence and Peace Economics Vol: 28 No 6 |
| Key Words | China ; Economic Growth ; Defence Spending ; Public Expenditures ; Trade-Off Relationship |