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Estimating non-transparent military expenditures: The case of china (PRC)

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  • Digby Waller

Abstract

Data limitations arising from non-transparency in military expenditure reporting impose significant constraints on economists studying country and comparative developments in this field. This article focuses on the case of China. It reviews the recent literature on China's military expenditure, examines the variance in published estimates, and identifies three factors which help explain the variance: budgetary falsification; non-budgeted PLA revenue; and the US dollar purchasing-power parity of the yuan. Conclusions emphasize important policy implications of such variance and suggest a more active role for defence economists in a field of research generating considerable attention from international relations scholars.

Suggested Citation

  • Digby Waller, 1997. "Estimating non-transparent military expenditures: The case of china (PRC)," Defence and Peace Economics, Taylor & Francis Journals, vol. 8(2), pages 225-241.
    • Handle: RePEc:taf:defpea:v:8:y:1997:i:2:p:225-241
    DOI: 10.1080/10430719708404877
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    Cited by:

    1. Chiwei Su & Yingying Xu & Hsu Ling Chang & Oana-Ramona Lobont & Zhixin Liu, 2020. "Dynamic Causalities between Defense Expenditure and Economic Growth in China: Evidence from Rolling Granger Causality Test," Defence and Peace Economics, Taylor & Francis Journals, vol. 31(5), pages 565-582, July.
    2. Chen Bing-Fu & Zhao Liming, 2006. "The Determinants of China's Defense Expenditure Before and After Transition," Conflict Management and Peace Science, Peace Science Society (International), vol. 23(3), pages 227-244, July.
    3. Liming Zhao & Liang Zhao & Bing-Fu Chen, 2017. "The interrelationship between defence spending, public expenditures and economic growth: evidence from China," Defence and Peace Economics, Taylor & Francis Journals, vol. 28(6), pages 703-718, November.

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