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Military spending and economic growth in China a regime switching analysis.pdf (578.67 kB)

Military spending and economic growth in China: A regime-switching analysis

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posted on 2023-06-09, 09:08 authored by Faek Menla AliFaek Menla Ali, O Dimitraki
This article investigates the impact of military spending changes on economic growth in China over the period 1953 to 2010. Using two-state Markov-switching specifications, the results suggest that the relationship between military spending changes and economic growth is state dependent. Specifically, the results show that military spending changes affect the economic growth negatively during a slower growth-higher variance state, while positively within a faster growth-lower variance one. It is also demonstrated that military spending changes contain information about the growth transition probabilities. As a policy tool, the results indicate that increases in military spending can be detrimental to growth during slower growth-higher growth volatility periods. © 2014 The Author(s). Published by Taylor & Francis.

History

Publication status

  • Published

File Version

  • Published version

Journal

Applied Economics

ISSN

0003-6846

Publisher

Taylor & Francis

Issue

28

Volume

46

Page range

3408-3420

Department affiliated with

  • Business and Management Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2017-12-05

First Open Access (FOA) Date

2017-12-05

First Compliant Deposit (FCD) Date

2017-12-05

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