Causality between Defence Spending and Economic Growth: The Case of Mainland China
Abstract
Using cointegration and Granger causality tests, examines the causal relationship between defence spending and economic growth in mainland China over the period 1950‐1991. The results show that defence spending is not cointegrated with the real economic growth rate, implying the lack of any long‐run equilibrium relationship between the two variables. In addition, Granger causality tests indicate causal independence between the two variables.
Keywords
Citation
Chen, C. (1993), "Causality between Defence Spending and Economic Growth: The Case of Mainland China", Journal of Economic Studies, Vol. 20 No. 6. https://doi.org/10.1108/01443589310048145
Publisher
:MCB UP Ltd
Copyright © 1993, MCB UP Limited