Causality between Defence Spending and Economic Growth: The Case of Mainland China

Using cointegration and Granger causality tests, examines the causal relationship between defence spending and economic growth in mainland China over the period 1950-1991. The results show that defence spending is not cointegrated with the real economic growth rate, implying the lack of any long-run equilibrium relationship between the two variables. In addition, Granger causality tests indicate causal independence between the two variables.

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Year of publication:	1993
Authors:	Chen, Chien-Hsun
Published in:	Journal of Economic Studies. - Emerald Group Publishing. - Vol. 20.1993, October, 6, p. 37-43
Publisher:	Emerald Group Publishing
Subject:	China \| Defence \| Economic growth \| Growth

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004987089