Defense spending and economic growth: evidence from China, 1952–2012

This paper examines whether defense expenditures contributed to economic growth in China for the 1952–2012 period. We examine the contribution of defense to economic growth using recently published official data on economic activity, defense, and government expenditures. We employ the Feder-Ram and augmented Solow models of economic growth to explore the defense-growth relationship. The Feder-Ram model appears to poorly explain economic growth in China. The augmented Solow model suggests, however, that a 1% increase in defense expenditures raises the economic growth rate by approximately 0.15–0.19%.     

Shock initiation performance of NTO-based polymer bonded explosive

3-nitro-1,2,4-tri-azol-5-one (NTO) is a high energy insensitive explosive. To study the shock initiation process of NTO-based polymer bonded explosive JEOL-1 (32%octahydro-1,3,5,7-tetranitro-1,3,5,7-tetrazocine (HMX), 32% NTO, 28% Al and 8% binder system), the cylinder test, the gap experiments and numerical simulation were carried out. Firstly, we got the detonation velocity (7746 m/s) and the parameters of Jones-Wilkins-Lee (JWL) equation of state (EOS) for detonation product by cylinder test and numerical simulation. Secondly, the Hugoniot curve of unreacted explosive for JEOL-1 was obtained calculating the data of pressure and time at different Lagrangian positions. Then the JWL EOS of unreacted explosive was obtained by utilizing the Hugoniot curve as the reference curve. Finally, we got the pressure growth history of JEOL-1 under shock wave stimulation and the parameters of the ignition and growth reaction rate equation were obtained by the pressure-time curves measured by the shock-initiation gap experiment and numerical simulation. The determined trinomial ignition and growth model (IG model) parameters can be applied to subsequently simulation analysis and design of insensitive ammunition with NTO-based polymer bonded explosive.     

Effect of welding processes and consumables on fatigue crack growth behaviour of armour grade quenched and tempered steel joints

Quenched and Tempered (Q&T) steels are widely used in the construction of military vehicles due to its high strength to weight ratio and high hardness. These steels are prone to hydrogen induced cracking (HIC) in the heat affected zone (HAZ) after welding. The use of austenitic stainless steel (ASS) consumables to weld the above steel was the only available remedy because of higher solubility for hydrogen in austenitic phase. The use of stainless steel consumables for a non-stainless steel base metal is not economical. Hence, alternate consumables for welding Q&T steels and their vulnerability to HIC need to be explored. Recent studies proved that low hydrogen ferritic steel (LHF) consumables can be used to weld Q&T steels, which can give very low hydrogen levels in the weld deposits. The use of ASS and LHF consumables will lead to distinct microstructures in their respective welds. This microstructural heterogeneity will have a drastic influence in the fatigue crack growth resistance of armour grade Q&T steel welds. Hence, in this investigation an attempt has been made to study the influence of welding consumables and welding processes on fatigue crack growth behaviour of armour grade Q&T Steel joints. Shielded metal arc welding (SMAW) and Flux cored arc welding (FCAW) were used for fabrication of joints using ASS and LHF consumables. The joints fabricated by SMAW process using LHF consumable exhibited superior fatigue crack growth resistance than all other joints.     

Military expenditure,economic growth and structural instability: a case study of South Africa

This paper contributes to the growing literature on the milex-growth nexus, by providing a case study of South Africa and considering the possibility of structural breaks by applying newly developed econometric methods. Using full sample bootstrap Granger non-causality tests, no Granger causal link is found between military expenditure and GDP for 1951–2010, but parameter instability tests show the estimated VARs to be unstable. Using a bootstrap rolling window estimation procedure, however, finds evidence of bidirectional Granger causality in various subsamples. This implies standard Granger non-causality tests, which neither account for structural breaks nor time variation may be invalid.     

Does Military Spending Really Matter for Economic Growth in China and G7 Countries: The Roles of Dependency and Heterogeneity

This study revisits the causal linkages between military spending and economic growth in China and G7 countries (i.e. Canada, France, Germany, Italy, Japan, the UK, and the USA) by focusing country-specific analysis for the period 1988–2010. The panel causality analysis, which accounts for both cross-country dependency and heterogeneity across countries, is employed in this study. Our results find evidence of the neutrality hypothesis for Italy, France, and Germany, the military spending–growth detriment hypothesis for both Canada and the UK, and one-way Granger causality running from economic growth to military spending for China. Furthermore, we find a feedback between military spending and economic growth in both Japan and the USA. Thus, our results do not support that one size fits all.     

Military Spending and Economic Growth: The Case of Iran

Over the last decade, the Iranian Government budget on military has been higher than the average of the world. The current increasing international sanctions aim to reduce the military capabilities and capacities of the Iranian Government. We analyze the response of the Iranian economy to shocks in its military budget from 1959 to 2007, using impulse response functions and variance decomposition analysis. The Granger causality results show that there is unidirectional causality from the military spending growth rate to the economic growth rate. The response of income growth to increasing shocks in the military budget is positive and statistically significant.     

MILITARY EXPENDITURE AND ECONOMIC GROWTH

This paper tests the relationship between military expenditure and economic growth by including the impact of the share of military and civilian components of government expenditure in an economic growth model with endogenous technology. In this framework, we empirically consider the hypothesis of a non‐linear effect of military expenditure on economic growth. Differences between the costs and benefits of the defence sector has traditionally explained the non‐linear relationship suggesting that shocks to insecurity may also be a source of non‐linearity as they determine a re‐allocative effect within government expenditure. While parametric partial correlations are in line with empirical findings, the robustness of estimations is tested by using a non‐parametric approach. The negative relationship between military expenditure and growth in countries with high levels of military burden predicted by theory becomes significant only after including a proxy for re‐allocative effects in the growth equation.     

ON THE RELATIONSHIP BETWEEN MILITARY EXPENDITURE,THREAT, AND ECONOMIC GROWTH: A NONLINEAR APPROACH

The main objective of the paper is to decipher the military expenditure–economic growth relationship, taking the level of economic development (income) into consideration. Our findings suggest the following: (i) military expenditure has a significantly negative relationship to economic growth for the 23 countries with initial incomes (threshold variable) less than or equal to $475.93; (ii) when the threat level is heightened, economic growth (23 countries) is expected to decrease. However, military expenditure in the presence of sufficiently large threats increases growth; (iii) for the remaining 69 countries whose initial incomes (real GDP per capita in 1992 price) exceed $475.93, no significant relationship exists whether the threat variable is taken into consideration or not.     

Defense spending and economic growth across the Taiwan straits: a threshold regression model

This paper employs both linear and non‐linear models to investigate the relationship between national defense spending and economic growth for Taiwan and China. Using data from 1953–2000 on defense spending, GDP, import, export and capital, we find that China's defense spending leads that of Taiwan. There exists the phenomenon of an arms race between both countries when official Chinese data are used. On the one hand, feedback relations prevail between economic growth and defense spending growth in Taiwan. On the other hand, China's national defense is found to lead economic growth.     

A note on defence spending in turkey: New findings

The relationship between defence spending and economic growth has been examined extensively in recent years using the Feder (1983) model. These studies suffer from poor statistical results. In this paper, the earlier findings of Sezgin (1997), which used the Feder model are re‐estimated. Firstly, the stationarity of variables is tested. Due to the non‐stationarity of some variables, regressions are performed using first differences of variables. Secondly, lags are introduced into the Feder model. The statistical results are highly improved. Not only is a strong positive association between defence spending and economic growth found for Turkey, but also human capital is positively correlated to Turkish economic growth with a lag.