The Determinants of China's Defense Expenditure Before and After Transition

Bibliographic Data

ID12074472
AuthorsBing-Fu Chen (Naval University of Engineering, corresponding author), Chen Bing-Fu (School of Management Tianjin University Tianjin, China, Department of Financial Management Naval University of Engineering at Tianjin Tianjin, China, chenbf1992@ 163.com), Li-Ming Zhao (0000-0002-0854-4964, Tianjin University), Zhao Liming Zhao Liming (School of Management Tianjin University Tianjin, China)
Year2006
Volume23
Issue3
Pages227-244
Publication date2006-07-01
Open AccessYes
TypeARTICLE
VenueConflict Management and Peace Science (JOURNAL)
Journal identifiersISSN: 0738-8942 • E-ISSN: 1549-9219
PublisherSAGE Publishing (PUBLISHER • US)
DOI10.1080/07388940600837730
OpenAlexW2090585262
LanguageEN
Citations received2
References cited13

This paper examines the determinants of China's defense expenditure over the period 1960—1999, and two sub-samples before and after transition for 1960—1980 and 1981— 1999, applying official Chinese data and SIPRI Yearbook data. An empirical econometric model is set up on the basis of standard neo-classical theory. The empirical results suggest that earlier defense expenditure, changes in the strategy environment, and GDP are major determinants of China's defense expenditure on the long run. For the split periods, the national security environment, economic factor, and earlier defense expenditure are the main determining factors prior to 1981, but earlier defense expenditure is the main determinant after 1981 (when official Chinese data are used). The impact of Taiwanese military spending on Mainland China's demand for defense expenditure was not statistically significant

Aggregate expenditure · China · Demographic economics · Econometric analysis · Econometrics · Economics · Government Expenditure · Macroeconomics · Mainland China · Panel data · Political science · Public finance · Yearbook · Defense, Military, and Policy Studies · Economic Growth and Productivity · Fiscal Policy and Economic Growth

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