Relationship Between National Defense Expenditure And Other Public Expenditure

Defense expenditure is not only a sovereign country’s essential items,but also aninevitable choice to safeguard one country’s territorial and nationalindependence.Defense apartment in the provision of “national security” of the purepublic goods,to defend national sovereignty,maintaining normal social order andeconomic development has palyed an irreplaceable role.However,defense expenditureas a high consumption expenditures,and can not generate wealth for the socialeconomic developmeng,even in the event of war would be a huge social wealthdestruction,which have become full of many scholars and economists criticizedit.Therfore,the study that what we should do is to find the relationship of defenseexpenditure and other government public expenditure,also we should find theincrease in defense expenditure whether or not crowd in other publlic expenditure.It’sbecome more and more a hot research issue.In this paper,we start in the actual data from1978to2006of China,to study theimpact of China’s defense expenditure’s relationship with other public expenditure. Inresearch methods,this paper will adopt the quantitative anlaysis of methods-VARmodel,who is very popular inrecent years.This method start from the actual data ofeconomy rather than starting with a strict economic theory,to study the impact of therelationship betwwen several variables.Finally,this paper will be based on theresearch results,to come up some reasonable recommendations for defenseexpenditure and other public expenditure.