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....

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...