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

Chen Bing-Fu and Zhao Liming
Additional contact information
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
Zhao Liming: School of Management Tianjin University Tianjin, China

Conflict Management and Peace Science, 2006, vol. 23, issue 3, 227-244

Abstract: 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.

Keywords: defense expenditure; determinants of defense expenditure; China (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1080/07388940600837730 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:compsc:v:23:y:2006:i:3:p:227-244

DOI: 10.1080/07388940600837730

Access Statistics for this article

More articles in Conflict Management and Peace Science from Peace Science Society (International)
Bibliographic data for series maintained by SAGE Publications ().