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New evidence from an alternative methodological approach to the defence spending-economic growth causality issue in the case of mainland China

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dc.contributor.authorMohammed Masih, Abul Mansur
dc.contributor.authorMasih, Rumi
dc.contributor.authorHasan, Mohammad S.
dc.date.accessioned2018-12-09T07:46:34Z
dc.date.available2018-12-09T07:46:34Z
dc.date.issued1997
dc.description.abstractProposes to re-examine empirically the causal relationship between defence spending and economic growth in mainland China. First, using a VAR modelling technique with suitable diagnostics, e.g. Akaike's FPE statistics and a likelihood ratio test for over and under-fitting the causal model, the results indicate a positive unidirectional causality flowing from defence spending to economic growth. Second, by evaluating a dynamic vector error correction model, variance decomposition and impulse response functions, then analyses the direction, duration and strength of Granger-causality between defence spending and economic growth. The results broadly indicate that defence spending and economic growth did share a common trend over the sample period under analysis, but it was the former which stimulated the latter. Moreover, it is defence spending that has a much more perceptible and prolonged effect on economic growth, giving rise to implications that although expenditure on defence may have been politically motivated, over the long?run this spending did play a significant indirect role in enhancing the growth potential of this, for many years, closed?door economy.en_US
dc.identifier.citationMohammed Masih, Abul Mansur and Masih, Rumi and Hasan, Mohammad S. (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), pp.123-140.en_US
dc.identifier.doihttps://doi.org/10.1108/01443589710167347
dc.identifier.issn0144-3585
dc.identifier.urihttps://ikr.inceif.org/handle/INCEIF/3004
dc.languageEnglish
dc.language.isoengen_US
dc.publisherMCB UP Ltden_US
dc.rights1997. MCB UP Ltd
dc.sourceSEDONA
dc.subjectCointegrationen_US
dc.subjectDefenceen_US
dc.subjectGrowthen_US
dc.subjectModelsen_US
dc.titleNew evidence from an alternative methodological approach to the defence spending-economic growth causality issue in the case of mainland Chinaen_US
dc.typeJournal Articleen_US
dlc.maintopicConventional finance
dlc.subtopicEconomics
dspace.entity.typePublication
ikr.doctypeScholarly Works
ikr.topic.maintopicConventional financeen_US
ikr.topic.subtopicConventional financeen_US
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