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On the contribution of defense innovation to China’s economic growth

Author

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  • Chaoqing Yuan
  • Sifeng Liu
  • Yingjie Yang
  • Yu Shen

Abstract

As the most knowledge-intensive industrial sectors, China’s defense industries are developing very fast. The present paper will explore the contribution of China’s defense innovation to its economic growth. Cobb–Douglas production function, integrating defense and non-defense stock in knowledge, is applied during the course. In addition, an input–output analysis of defense equipment procurement was done. Positive effect of China’s defense innovation on economic growth has been revealed by comparing the results from the two methods. And some suggestions are made to strengthen the effect.

Suggested Citation

  • Chaoqing Yuan & Sifeng Liu & Yingjie Yang & Yu Shen, 2016. "On the contribution of defense innovation to China’s economic growth," Defence and Peace Economics, Taylor & Francis Journals, vol. 27(6), pages 820-837, November.
    • Handle: RePEc:taf:defpea:v:27:y:2016:i:6:p:820-837
    DOI: 10.1080/10242694.2014.901644
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    References listed on IDEAS

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    1. Goel, Rajeev K. & Payne, James E. & Ram, Rati, 2008. "R&D expenditures and U.S. economic growth: A disaggregated approach," Journal of Policy Modeling, Elsevier, vol. 30(2), pages 237-250.
    2. Erik Poole & Jean-Thomas Bernard, 1992. "Defence Innovation Stock and Total Factor Productivity," Canadian Journal of Economics, Canadian Economics Association, vol. 25(2), pages 438-452, May.
    3. Dominique Guellec & Bruno Van Pottelsberghe De La Potterie, 2003. "The impact of public R&D expenditure on business R&D," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(3), pages 225-243.
    4. Eduardo Morales-Ramos, 2002. "Defence R&D expenditure: The crowding-out hypothesis," Defence and Peace Economics, Taylor & Francis Journals, vol. 13(5), pages 365-383.
    5. Leontief, Wassily, 1970. "Environmental Repercussions and the Economic Structure: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 52(3), pages 262-271, August.
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    Cited by:

    1. Konstantinos Sioumalas-Christodoulou, 2021. "Exploring the Intellectual Capital of a High Tech Industry: A Case Study of the Scientific Outputs of Defence Firms," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 11(3), pages 69-85.
    2. Yingying Xu & Hsu Ling Chang & Chi Wei Su & Adelina Dumitrescu, 2018. "Guns for Butter? Empirical Evidence from China," Defence and Peace Economics, Taylor & Francis Journals, vol. 29(7), pages 809-820, November.

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