The Long-run Causal Relationship Between Military Expenditure and Economic Growth in China: Revisited

References

• Aizenman, J., and R. Glick. 2006. “Military expenditure, threats, and growth.” Journal of International Trade & Economic Development 15 (2): 129–155.
   Google Scholar
• Barro, R. J. 1990. “Government spending in a simple model of endogenous growth.” Journal of Political Economy 98 (5): S103–S125.
   Web of Science ®Google Scholar
• Benoit, E. 1973. Defence and Growth in Developing Countries. Boston, MA: Heath, Lexington Books.
   Google Scholar
• Bing-Fu, C., and Z. Liming. 2006. “Determinants of China’s defence expenditure before and after transition.” Conflict Management and Peace Science 23 (3): 227–244.
   Web of Science ®Google Scholar
• Blasko, D. J., C. W. Freeman, S. A. Horowitz, E. S. Medeiros, and J. C. Mulvenon. 2007. Defense-Related Spending in China: A Preliminary Analysis and Comparison with American Equivalents. Washington, DC: The U.S.-China Policy Foundation.
   Google Scholar
• Bo, C., and X. Xing. 2011. “Military spending and economic growth in China, 1953–2007: a note on econometric analysis by using Eviews.” In Frontiers of Peace Economics and Peace Science (Contributions to Conflict Management, Peace Economics and Development), edited by M. Chatterji, C. Bo and R. Misra, 115–131. Bingley: Emerald.
   Google Scholar
• Brumm, H. 1997. “Military spending, government disarray and economic growth: A cross-country empirical analysis.” Journal of Macroeconomics 19 (4): 827–838.
   Web of Science ®Google Scholar
• Burke, S. P., and J. Hunter. 2005. Modelling Non-Stationary Time Series. England: Palgrave MacMillan.
   Google Scholar
• Burke, S., and J. Hunter. 2007. “The Wold representation, degree of non-cointegration, and the Johansen trace test.” Quantitative and Qualitative Analysis in Social Sciences 1 (3): 21–39.
   Google Scholar
• Caporale, G. M., and N. Pittis. 1997. “Causality and forecasting in incomplete systems.” Journal of Forecasting 16 (6): 425–437.
   Web of Science ®Google Scholar
• Castillo, J., J. L. A. J. Tellis, and J. M. B. Zycher. 2001. Military Expenditure and Economic Growth. Santa Mocina, LA: Rand.
   Google Scholar
• Cavelty, M. D., J. Grätz, A. Jackobs, P. Mahadevan, and D. Möckli. 2012. Strategic Trends 2012: Key Developments in Global Affairs. ETH Zurich: Centre for Security Studies.
   Google Scholar
• Chang, T., W. Fang, L. F. Wen, and C. Liu. 2001. “Defence spending, economic growth and temporal causality: Evidence from Taiwan and Mainland China.” Applied Economics 33 (10): 1289–1299.
   Web of Science ®Google Scholar
• Chen, C. H. 1993. “Causality between defence spending and economic growth: The case of Mainland China.” Journal of Economic Studies 20 (6): 37–43.
   Google Scholar
• Chen, S., and J. Feffer. 2009. “China’s military spending: Soft rise or hard threat?” Asian Perspective 33 (4): 47–67.
   Web of Science ®Google Scholar
• Chowdhury, A. 1991. “A causal analysis of defence spending and economic growth.” Journal of Conflict Resolution 35 (1): 80–97.
   Web of Science ®Google Scholar
• Cordesman, A. H., and N. S. Yarosh. 2012. Chinese Military Modernization and Force Development: A Western Perspective. Washington, DC: CSIS.
   Google Scholar
• D’Agostino, C. J., J. P. Dunne, and L. Pieroni. 2010. “Assessing the effects of military expenditure on growth.” In Oxford Handbook of the Economics of Peace and Conflict, edited by S. Skaperdas and M. R. Garfinkel, 388–411. Oxford: Oxford University Press.
   Google Scholar
• Dakurah, A. H., S. P. Davies, and R. K. Sampath. 2001. “Defence spending and economic growth in developing countries: A causality analysis.” Journal of Policy Modeling 23 (6): 651–658.
   Web of Science ®Google Scholar
• Deger, S. 1986. “Economic development and defence expenditure.” Economic Development and Cultural Change 35 (1): 179–196.
   Web of Science ®Google Scholar
• Deger, S., and S. Sen. 1990. Military Expenditure: The Political Economy of International Security. Sweden: SIPRI.
   Google Scholar
• Deger, S., and R. P. Smith. 1983. “Military expenditures and growth in less developed countries.” Journal of Conflict Resolution 27 (2): 335–353.
   Web of Science ®Google Scholar
• Devarajan, S., V. Swaroop, and Z. Heng-Fu. 1996. “The composition of public expenditure and economic growth.” Journal of Monetary Economics 37 (2–3): 313–344.
   Web of Science ®Google Scholar
• Dickey, D. A., and W. A. Fuller. 1981. “Likelihood ratio statistics for autoregressive time series with a unit root.” Econometrica 49 (4): 1057–1072.
   Web of Science ®Google Scholar
• Dunne, J. P. 1996. “Economic effects of military expenditure in developing countries: a survey.” In The Peace Dividend, edited by N. P. Gleditsch, O. Bjerkholt, A. Cappelen, R. Smith and J. P. Dunne, 439–464. Amsterdam: Elsevier Science.
   Google Scholar
• Dunne, J. P., R. Smith, and D. Willenbockel. 2005. “Models of military expenditure and growth: A critical review.” Defence and Peace Economics 16 (6): 449–461.
   Web of Science ®Google Scholar
• Dunne, J.P. and Uye, M. (2008) Does High Spending on Arms Reduce Economic Growth? A Review of Research. Report for Oxfam.
   Google Scholar
• Elliott, G., T. Rothenberg, and J. H. Stock. 1996. “Efficient tests for an autoregressive unit root.” Econometrica 64 (4): 813–836.
   Web of Science ®Google Scholar
• Engle, R. F., and C. W. J. Granger. 1987. “Co-integration and error correction: Representation, estimation, and testing.” Econometrica 55 (2): 251–276.
   Web of Science ®Google Scholar
• Hall, A. 1994. “Testing for a unit root in time series with pretest data-based model selection.” Journal of Business and Economic Statistics 12 (4): 461–470.
   Web of Science ®Google Scholar
• Hansen, H., and S. Johansen. 1999. “Some tests for parameter constancy in cointegrated VAR-models.” The Econometrics Journal 2 (2): 306–333.
   Google Scholar
• International Crisis Group (2009) China’s Growing Role in UN Peacekeeping. Asia Report N°166 – 17 April 2009, http://www.unhcr.org/refworld/pdfid/49ec24ca2.pdf.
   Google Scholar
• Jiren, X. 2000. Circumstances Affecting China’s Defense Budget Increase. Washington, DC: Military Economics Study, PLA Institute of Military Economics.
   Google Scholar
• Joerding, W. 1986. “Economic growth and defence spending.” Journal of Development Economics 21 (1): 35–40.
   Web of Science ®Google Scholar
• Johansen, S. 1992. “Testing weak exogeneity and the order of cointegration in UK money demand data.” Journal of Policy Modeling 14 (3): 313–334.
   Web of Science ®Google Scholar
• Johansen, S. 1995. Likelihood-based Inference in Cointegrated Vector Autoregressive Model. Oxford: Oxford University Press.
   Google Scholar
• Johansen, S. 2002. “A small sample correction of the test for cointegrating rank in the vector autoregressive model.” Econometrica 70 (5): 1929–1961.
   Web of Science ®Google Scholar
• Juselius, K. 2006. The Cointegrated VAR Model – Methodology and Applications. Oxford: Oxford University Press.
   Google Scholar
• Juselius, K., and R. MacDonald. 2004. “International parity relationships between the US and Japan.” Japan and the World Economy 16 (1): 17–34.
   Web of Science ®Google Scholar
• Kennedy, P. 1984. The Rise and Fall of the Great Powers. New York, NY: Vintage Books.
   Google Scholar
• Khrushchev, N. S. 1959/1960. “On peaceful coexistence.” Foreign Affairs 38 (1): 1–18.
   Web of Science ®Google Scholar
• Kim, S. S. 2003. “China’s path to great power status in the globalization era.” Asian Perspective 27 (1): 35–75.
   Google Scholar
• Kusi, N. K. 1994. “Economic growth and defence spending in developing countries.” Journal of Conflict Resolution 3 (8): 152–159.
   Web of Science ®Google Scholar
• Lai, C. L., B. N. Huang, and C. W. Yang. 2005. “Defence spending and economic growth across the Taiwan straits: A threshold regression model.” Defence and Peace Economics 16 (1): 45–57.
   Web of Science ®Google Scholar
• Legro, W. J. 2007. “What China will want: The future intentions of a rising power.” Perspectives on Politics 5 (3): 515–534.
   Google Scholar
• Maddison, A. 2007. Chinese Economic Performance in the Long Run, 960–2030 AD. Paris: OECD.
   Google Scholar
• Masih, A. M. M., R. Masih, and M. S. Hasan. 1997. “New evidence from an alternative methodological approach to the defence spending-economic growth causality issue in the case of Mainland China.” Journal of Economic Studies 24 (3): 123–140.
   Google Scholar
• Ng, S., and P. Perron. 1995. “Unit root test in ARMA models with data dependent methods for the selection of the truncation lag.” Journal of the American Statistical Association 90 (429): 268–281.
   Web of Science ®Google Scholar
• Ng, S., and P. Perron. 2001. “Lag length selection and the construction of unit root tests with good size and power.” Econometrica 69 (6): 1519–1554.
   Web of Science ®Google Scholar
• Nolt, J. L. 2002. “China’s declining military power.” The Brown Journal, of World Affairs IX (1): 321–334.
   Google Scholar
• Organski, A. F. K., and J. Kugler. 1980. The War Ledger. Chicago, IL: Chicago University Press.
   Google Scholar
• Perron, P. 1989. “The great crash, the oil price shock and the unit root hypothesis.” Econometrica 57 (6): 1361–1401.
   Web of Science ®Google Scholar
• Phillips, P. C. B., and P. Perron. 1988. “Testing for a unit root in time series regression.” Biometrika 75 (2): 335–346.
   Web of Science ®Google Scholar
• Pradhan, R. P. 2010. “Defence spending and economic growth in China, India, Nepal and Pakistan: Evidence from cointegrated panel analysis.” International Journal of Economics and Finance 12 (4): 65–74.
   Google Scholar
• Ram, R. 1995. “Defence expenditure and economic growth.” In Handbook of Defence Economics, edited by K. Hartley and T. Sandler, 251–273. Amsterdam: Elsevier.
   Google Scholar
• Sen, A. 2003. “On unit root tests when the alternative is a trend break stationary process.” Journal of Business and Economic Statistics 21 (1): 174–184.
   Web of Science ®Google Scholar
• Shambaugh, D. 2002. Modernizing China’s Military: Progress, Problems, and Prospects. Berkeley, CA: University of California Press.
   Google Scholar
• Yearbook, S. I. P. R. I. 2011, 2012. Armaments, Disarmament and International Security. Oxford: Oxford University Press.
   Google Scholar
• Smith, R. P. 2000. “Defence expenditure and economic growth.” In Making Peace Pay: A Bibliography on Disarmament and Conversion, edited by N. P. Gleditsch, G. Lindgren, N. Mouhleb, S. Smit and I. De Soysa, 15–24. Claremont, CA: Regina Books.
   Google Scholar
• Smith, R. and Smith, D. (1980) Military Expenditure, Resources and Development. Birkbeck College Discussion Paper, No. 87, University of London.
   Google Scholar
• Stroup, M. D., and J. C. Heckelman. 2001. “Size of the military sector and economic growth: A panel data analysis of Africa and Latin America.” Journal of Applied Economics 4 (2): 329–360.
   Google Scholar
• Wang, S. (1999) The Military Expenditure of China, 1989–98. Oslo: SIPRI Yearbook 1999.
   Google Scholar
• Watson, C. 2009. “The Chinese armed forces and non-traditional missions: A growing tool of statecraft.” China Brief 9 (4): 9–12.
   Google Scholar
• Wolde-Rufael, Y. 2001. “Causality between defence spending and economic growth-The case of Mainland China: A comment.” Journal of Economic Studies 28 (3): 227–230.
   Google Scholar
• Wood, J. (2010) Economic Factors Shaping China’s Defence Spending: Historical Trends and Recent Developments. Science Applications International Corp McLean VA No. ASCO-2010-022.
   Google Scholar
• Wu, F. 2003. “Chinese economic statistics–caveat emptor!.” Post-Communist Economies 15 (1): 127–145.
   Web of Science ®Google Scholar
• Yildirim, J., S. Sezgin, and N. Ocal. 2005. “Military expenditure and economic growth in Middle Eastern countries: A dynamic panel data analysis.” Defence and Peace Economics 16 (4): 283–295.
   Web of Science ®Google Scholar
• Zivot, E., and D. Andrews. 1992. “Further evidence of great crash, the oil price shock and unit root hypothesis.” Journal of Business and Economic Statistics 10 (3): 251–270.
   Web of Science ®Google Scholar