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Guns-butter tradeoff in contemporary China
Journal article   Peer reviewed

Guns-butter tradeoff in contemporary China

Yu Wang
Defense & Security Analysis, Vol.30(1), pp.67-75
01/02/2014
DOI: 10.1080/14751798.2013.864867

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Abstract

This study offers an investigation of the relationship between defense and social spending in the People's Republic of China. In particular, three consecutive questions are answered here. Does a warfare-welfare tradeoff exist in China's budgetary allocation? Is it positive or negative? What is the causal direction involved? By applying a vector autoregression analysis for the period of 1952-2006, this study finds a unidirectional crowd-out effect going from defense to social spending.
social spending defense China VAR tradeoff

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