Defense spending and economic growth: evidence from China, 1952-2012
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Authors
Augier, Mie
Mcnab, Robert
Guo, Jerry
Karber, Phillip
Subjects
China
Defense expenditures
Economic growth
Defense-growth relationship
Defense expenditures
Economic growth
Defense-growth relationship
Advisors
Date of Issue
2017
Date
2017
Publisher
Routledge Taylor & Francis Online
Language
Abstract
This paper examines whether defense expenditures contributed to economic growth in China for the 1952-2012
period. We examine the contribution of defense to economic growth using recently published official data on economic
activity, defense, and government expenditures. We employ the Feder-Ram and augmented Solow models of
economic growth to explore the defense-growth relationship. The Feder-Ram model appears to poorly explain economic
growth in China. The augmented Solow model suggests, however, that a 1% increase in defense expenditures
raises the economic growth rate by approximately 0.15-0.19%.
Type
Article
Description
The article of record as published may be found at http://dx.doi.org/10.1080/10242694.2015.1099204
Series/Report No
Department
Business & Public Policy (GSBPP)
Organization
Naval Postgraduate School (U.S.)
Identifiers
NPS Report Number
Sponsors
Potomac Foundation
Funder
Format
26 p.
Citation
Augier, Mie, et al. "Defense spending and economic growth: evidence from China, 1952–2012." Defence and Peace Economics 28.1 (2017): 65-90.
Distribution Statement
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.