On The Coordinated Development Of China 's National Defense Construction And Economic Construction

In recent years, China has actively participated in the process of economic globalization.The economy has maintained steady growth and ranked second in the world.With the deepening of economic globalization and accelerating evolution of the international strategic situation. China’s security is facing increasingly severe threat, including political or economic issues such as hegemonic containment, security risks of surrounding areas, and the South China Sea issue and so on.Economic construction decides national defense needs and national defense construction is counterproductive in economic.National defense construction provide safe and stable environment for development of economic construction.Co-ordination of economic development and national defense and promotion of civil-military integration are great themes in the way to construct Socialist. Handling the relationship between economic development and national defense modernization and developing a reasonable scale of defense spending become important research directions in Defense Economics.In this paper, the author studied the current situation at home and abroad,investigated interaction between economic development and national defense and finally found that economic development is the decisive factor in the relationship and national defense construction is the assurance factor. Meanwhile the paper studied the feedback mechanism from national defense construction to economic construction and the relationship between defense spending and economic growth with empirical Analysis.Based on modern research methods the paper select the historical data of BRIC and the U.S. to launch the empirical study by using smooth transition auto-regressive (STAR) model.Then the paper used test results of Granger causality and different STAR models to analyze the relationship between defense spending and economic growth in different countries and compare the differences between China and the United States and other countries.The study found that there a lack of flexibility in the formation mechanism of defense spending and national defense construction is lagging behind in economic and political development.After the theoretical and empirical analysis.In combination with the problems identified the paper given countermeasures for coordinating defense building and economic development.Recommendations are as follows.Strengthen top-level mechanism design and high-level strategic guidance.Framework science and technology system which can combine military and civilian parts.Establish and optimize formation mechanism of defense spending which is synchronized with economic growth.Actively and flexibly respond to changes in the economy.Appropriate to increase the size of defense spending and strengthen national defense efforts.