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Guns--butter tradeoff in contemporary China

Yu Wang

Defense & Security Analysis, 2014, vol. 30, issue 1, 67-75

Abstract: This study offers an investigation of the relationship between defense and social spending in the People's Republic of China. In particular, three consecutive questions are answered here. Does a warfare--welfare tradeoff exist in China's budgetary allocation? Is it positive or negative? What is the causal direction involved? By applying a vector autoregression analysis for the period of 1952--2006, this study finds a unidirectional crowd-out effect going from defense to social spending.

Date: 2014
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DOI: 10.1080/14751798.2013.864867

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