@article{ref1,
title="The interrelationship between defence spending, public expenditures and economic growth: evidence from China",
journal="Defence and peace economics",
year="2017",
author="Zhao, Liming and Zhao, Liang and Chen, Bing-Fu",
volume="28",
number="6",
pages="703-718",
abstract="This study examines the relationship between defence spending, other components of public spending and economic growth for the 1952-2012 period in China using Granger causality tests and generalised impulse response functions based on vector error correction models. The empirical results reveal two long-run equilibrium relationships among the variables and also show that defence spending inversely and unidirectionally Granger impacts economic growth. Furthermore, empirical findings point to a trade-off relationship between defence spending and public expenditures in China. From a policy maker's perspective, the findings reported herein imply that a decrease in defence spending may stimulate economic growth.<p /> <p>Language: en</p>",
language="en",
issn="1024-2694",
doi="10.1080/10242694.2015.1111603",
url="http://dx.doi.org/10.1080/10242694.2015.1111603"
}