Research Military Expenditure Based On Combat Effectiveness

Complex relationship between military expenditure and the level of military strength give researchers a broad space to study on the economics of military expenditure. In short, the size and structure of military expenditure plays a decisive role in the forming of combat effectiveness. The combat effectiveness also reacts with its size and structure. Historical experience provides us with an opportunity to reflect. We study the relationship between the military expenditure and fighting power to achieve optimal allocation of military resources in the field of national defense. In the view of defense economics, the optimal allocation of military resources is just the problem of scale and structure of military expenditure.Through the theory of economics, management and military science, applying the method of normative and positive analysis, basing on a number of data and information, the paper reasons the dialectical relationship between military expenditure and combat effectiveness, and elicits the optimized development path of China's forces. First, the paper founds the "combat effectiveness -military expenditure" model and concludes that the scale and structure of military expenditure is a key factor in determining a nation's fighting power level. Second, taking account of technical factors the paper establishes the optimal structure of military spending by analyzing the influence of different percentage of military manpower and armament to the formation of combat effectiveness. Finally, on the base of a comprehensive analysis, the paper applies the optimal structure to the selection of China's national defense policies and gets its optimal development path.