Estimating non-transparent military expenditures: The case of china (PRC)

Digby Waller

Defence and Peace Economics, 1997, vol. 8, issue 2, 225-241

Abstract: Data limitations arising from non-transparency in military expenditure reporting impose significant constraints on economists studying country and comparative developments in this field. This article focuses on the case of China. It reviews the recent literature on China's military expenditure, examines the variance in published estimates, and identifies three factors which help explain the variance: budgetary falsification; non-budgeted PLA revenue; and the US dollar purchasing-power parity of the yuan. Conclusions emphasize important policy implications of such variance and suggest a more active role for defence economists in a field of research generating considerable attention from international relations scholars.

Keywords: Chinese military expenditure; Regional security; Estimating; Purchasing-power parity (search for similar items in EconPapers)
Date: 1997
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Citations: View citations in EconPapers (3)

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DOI: 10.1080/10430719708404877

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