Research Article
The Dynamic Relationship Between Defense Expenditure and Economic Growth Based on DCC-GARCH Model
@INPROCEEDINGS{10.4108/eai.24-5-2024.2350174, author={Junling Cai}, title={The Dynamic Relationship Between Defense Expenditure and Economic Growth Based on DCC-GARCH Model}, proceedings={Proceedings of the 3rd International Conference on Mathematical Statistics and Economic Analysis, MSEA 2024, May 24--26, 2024, Jinan, China}, publisher={EAI}, proceedings_a={MSEA}, year={2024}, month={10}, keywords={defense expenditure economic growth dcc-garch model dynamic correlation}, doi={10.4108/eai.24-5-2024.2350174} }- Junling Cai
Year: 2024
The Dynamic Relationship Between Defense Expenditure and Economic Growth Based on DCC-GARCH Model
MSEA
EAI
DOI: 10.4108/eai.24-5-2024.2350174
Abstract
The relationship between defense expenditure and economic growth is a key issue in the field of defense economy. Based on the annual data of China’s defense expenditure and GDP from 1978 to 2022, the DCC-GARCH model is used to empirically analyze the dynamic relationship between defense expenditure and economic growth in this paper. The research results show that in the past 40 years, there has been a dynamic positive relationship between China’s defense expenditure and economic growth over time, especially after 1996, and the relationship between the two has been basically stable and continuously enhanced. The conclusions provide a reference for rationally optimizing the allocation structure of national defense economic resources, which is helpful to improve the efficiency of national defense expenditure and enhance the level of national defense security.