Abstract
This paper re-examines the long-run causal relationship between military expenditure and economic growth in China over the period 1952–2010. An empirical econometric analysis based on a Barro-style growth model is conducted. By employing the Bartlett corrected trace test, which provides better approximations of the finite sample distribution to determine the rank of cointegration, the results support the existence of a single long-run equilibrium relationship between the variables. Furthermore, it is confirmed that the cumulated shocks of military expenditure primarily originate from different components of shocks that relate to economic development rather than the other way round.
| Original language | English |
|---|---|
| Article number | 3 |
| Pages (from-to) | 311 |
| Number of pages | 326 |
| Journal | Defence and Peace Economics |
| Volume | 26 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 11 Jun 2013 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 8 Decent Work and Economic Growth -
SDG 16 Peace, Justice and Strong Institutions
Keywords
- Barlette Corrected Trace Test
- China
- Cointegration
- economic growth
- Long -run
- Military expenditure
ASJC Scopus subject areas
- Economics, Econometrics and Finance (all)
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