Does defence expenditure have a spillover effect on income inequality? A cross-regional analysis in China

China’s defence expenditure has been growing rapidly along with GDP growth during the past two decades. Meanwhile, the income gap has continued to increase. There are conflicting views regarding whether the defence expenditure is capable of reducing income inequality. Therefore, this paper investigates the existence of any spillover effect of defence expenditure on income inequality, with a special focus on the regional differences among 31 provinces and 7 military regions in China. We extend panel cointegration and the impulse response function by using panel data during the period of 1997–2012. The empirical results show that the defence expenditure has an impact on income inequality, and the effect varies over different regions in China. The defence expenditure has a spillover effect on income inequality in the full sample panel and the southeastern panel. An increase in the defence expenditure does not crowd out social welfare spending due to the high level of economic development and government expenditure. On the contrary, in the northern panel, the effect is opposite because of the unbalanced economic development levels within the panel. Beijing as the capital of China, benefits more from the expansion of defence expenditure thus widening the income gap. In addition, the impulse response analyses further confirm a stronger effect of the defence expenditure on income inequality in the northern and the southeastern panels over a short period.     

A survey of performance issues in defence innovation

This article reviews innovation processes in defence. It analyses the way and the context under which these processes are carried out. The article covers the features of defence goods with impact on innovation, the development of a new good, the institutional arrangements that support these processes and the effect of innovation on industrial market. The analysis helps to identify the causes of facts observed in practice, such as poor performance in terms of product quality, cost or delivery time, as well as to assess potential remedies. Some policy implications, which can be derived from this analysis, are finally outlined.     

基于改进SLP的军事物流基地设施平面布局研究

由于传统SLP方法的不足,在解决设施较多的军事物流基地布局问题上面临较大困难。为解决此问题,提出了改进SLP方法,以军事物流基地设施间综合相互关系为基础,构建平面布局模型,并确定目标函数和主要约束条件。随后对模型的求解进行遗传算法设计,并运用Matlab编程实现模型的求解,从而得出平面布局的最优解。最后以最优解为基础,结合限制条件进行修正,完成军事物流基地设施平面布局设计。     

一种有机膨润土润滑脂的性能研究

以有机膨润土、HVI400矿物基础油、添加剂和极性助分散剂为原料,实验研究一种有机膨润土润滑脂,较详细地考察了极性助分散剂、添加剂及制备工艺（搅拌速度、搅拌时间、研磨次数）对膨润土润滑脂性能的影响.实验结果表明极性助分散剂采用丙酮时制备的膨润土润滑脂性能良好;液态添加剂比固体添加剂的效果好;制备工艺对膨润土润滑脂的性能有一定影响.采用15%有机膨润土稠化剂和85%HVI400矿物基础油,以2%-4%丙酮作极性助分散剂,添加0.5%抗氧剂、0.5%防锈剂、1%油性剂和4%极压抗磨剂,制备工艺为快速搅拌30 min,研制出一种性能良好的极压膨润土润滑脂,该润滑脂具有良好的高温性、胶体安定性、机械安定性、防锈性、抗水性和极压抗磨性.     

Japan as a Seapower: Strategy,Doctrine, and Capabilities under Three Defence Reviews, 1995–2010

Abstract

This article draws upon previously unavailable document materials to question views pointing to a degree of stagnation in Japanese maritime thinking. It similarly reviews claims about trends to compensate the decline of national military power with the build-up of projection capabilities. The article’s main argument is that Japanese seapower is not declining. The Japanese Navy is evolving to combine enhanced capabilities to retain sea control in the Sea of Japan and the East China Sea with extended operational reach and flexibility, including an expeditionary component to meet alliance and diplomatic commitments in East Asia and beyond its confines.     

Use it or lose it: On the incentives to spend annual defence operating budgets

In most western countries, there is a strong incentive for defence department budget-holders to expend all of the funds they are authorized to spend in a fiscal year. In this paper, we question whether this emphasis makes sense. We develop a model of a defence department’s operating expenditure assuming a fixed level of funding for a year and uncertain costs. The results of the model suggest that the incentive for departmental managers to expend all authorized funds is inefficient. We explore the implications of the model for the Department of National Defence (DND) in Canada in light of the recent criticism of DND lapsed funding by the Auditor-General of Canada.     

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.     

Arms export controls and emerging domestic producers†

The possibility of domestic production raises a difficulty for arms export control measures, since embargoes, by raising the effective price of imports, increase the incentive for domestic production. We address this issue by developing a partial equilibrium model of the international arms market We compare three arms export regimes involving the exporters of high‐technology arms, with a particular focus on the effect of emerging domestic production: laissez‐faire trade, the uncoordinated regulation of exports and a producer cartel consisting of coordinated regulation. The main conclusion is that the possibility of domestic production significantly changes the nature of these stylized export regimes.     

Globalisation in the defence industry: An exploration of the paradigm for us and European defence firms and the implications for being global players

This paper explores some of the key issues associated with the restructuring of the defence industry. A comparison is made between the US and the European Defence Industrial Bases in terms of the drivers for change and the paradigms within which change has taken place. Having shown that some very important differences exist, the paper then explores the approaches that have been adopted for industry consolidation and references them to the academic literature on mergers and acquisitions (M&As) and strategic alliances (SAs). Given that most of the key defence players recognise the need to be global players, the paper presents an argument that the European firms’ experience of operating with a wide range of forms of corporate alliance will serve them in good stead for operating on a global defence scale. US firms, in contrast, have focused largely on M&A activity.     

Alternative models of Greek defence expenditures

This paper models and estimates Greek defence spending over the 1950–1989 period. It employs the Stone‐Geary welfare function and estimates levels of defence expenditures by the Engle‐Granger two‐step procedure. The Dickey‐Fuller test regression for cointegration is specified in terms of the significance of additional augmentations. The Deaton‐Muellbauer functional form is then employed and an estimating equation for the expenditure share of defence is derived. This specification is compared with the levels equation through a number of non‐nested tests involving model transformation.