Research of the Relationship between Defense Expenditure and Economic Operation Based on Unconstrained VAR Model

DOI

10.2991/essaeme-15.2015.152How to use a DOI?

Keywords

vector auto regression, civil military integration, crowding-out effect, spillover effect.

Abstract

Based on unstructured dynamic modeling theory, collected data samples 37 years to establish unconstrained VAR model to analyze operating rules among defense expenditure, economic growth and private consumption. Research showed that there was a long-term balanced relationship among three factors. Economic growth and private consumption had a significant positive effect on defense expenditure, although not defense expenditure on economic growth and private consumption have a "crowding-out effect", but overall defense expenditure was still present negative scale characteristics, "spillover effect" was not obvious, needed to further strengthen the civil-military integration, improve scientific prediction capability of defense expenditure.

Copyright

© 2015, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Kan Zhang
AU  - Baoping Liu
AU  - Meng Wang
PY  - 2015/10
DA  - 2015/10
TI  - Research of the Relationship between Defense Expenditure and Economic Operation Based on Unconstrained VAR Model
BT  - Proceedings of the 2015 International Conference on Economics, Social Science, Arts, Education and Management Engineering
PB  - Atlantis Press
SP  - 707
EP  - 712
SN  - 2352-5398
UR  - https://doi.org/10.2991/essaeme-15.2015.152
DO  - 10.2991/essaeme-15.2015.152
ID  - Zhang2015/10
ER  -