The Relationship between Defense Expenditures and Economic Growth: The Case of Taiwan

• Main Authors: Chien-hsing Li, 李建興
• Other Authors: Song-zan Chiou-wei
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/46673076978749732877

碩士 === 南華大學 === 管理經濟學系經濟學碩士班 === 97 === 　　The purpose of this study is to reinvestigate the influence of defense expenditures on economic growth. In the past, most research use cross-sectional data analysis to analyze the phenomenon ; however, the cross-sectional data analysis is only suitable for analyzing the average holistic phenomenon of multi-countries, unable to reflect the heterogeneous phenomenon of individual countries. In addition, Bivariate Co-integration and Granger Causality have been used for empirical methods mostly in the previous empirical researches exploring defense expenditures and economic growth. However, Bivariate Co-integration may be unable to point out whether long-term relation exists among variables; also, Granger Causality can only test short-term causal relation. 　　　　　　　　　　　　　　　　　　 　　As the past studies may have problem of omission of relevant variables, the variables such as capital, labor and export have been added in this study, in order to establish a Multivariate Vector Autoregressive Model. Also, the factor like export that influence Taiwan’s economic growth, have been added in order to review the influence of defense expenditures on economic growth in Taiwan from 1955 to 2006. The econometric methods such as Unit Root Test, Multivariate Co-integration, Error Correction, Analysis of Variance (ANOVA), impulse Pulse function and so on have been adopted to conduct empirical analyses. The results of empirical analyses have shown: Defense expenditures have significant and positive influence on economic growth in long-term while defense expenditures have no significant influence on economic growth in short-term. Besides, the spontaneous impulse response of defense expenditures shows an insignificant influence on economic growth.