The Research On The Relevance Of Defense Industry And National Economy

To the national economy, defense industry not only has a special security role, but also has a role in regulating and promoting because of its association with the national economy. Thus, defense industry to national economy is an indivisible unity. From the association of defense industry and national economy, the core problems that defense industry has to solve are how to strengthen economic effects and technology effects to increase its external effects, as well as how to enhance its degree of correlation with the national economy for enhancing its national economy contributing role. Rational handling the relationship between defense industry and national economy, have a significant impact to our national security and national economy's long-term development.1. Based on the relevance of defense industry and national economy, this paper demonstrates the defense industry's position in the national economy, defensing the five contributions that industry made in the national economy.2. The author analyzes defense industries of the U.S., Europe, Russia, Japan, India and their defense industry and national economy's relationship, with summing up the international situation and future trends of the defense industry, to provide some reference period and theoretical basis to China's defense industry.3. The paper discusses briefly the history of China's defense industry reforms and the status quo. Through the use of econometric formula, the paper analyzes quantitative of China's defense industry and national economy's association level. Establishing scatter and regression curves between defense spending and GDP, this paper reaches binary linear regression equation of GDP and defense expenditure:GDP=8811.17+63.81×DS4. Formation mechanism of the defense industry's effect, including the multiplier principles of mechanism, technology diffusion mechanism, game of checks mechanism, balances mechanism and their nation's economic potential psychological effects.The establishment of an Evaluation index System and a Fuzzy Comprehensive Evaluation (FCE) model to evaluation the relevance of the defense industry and the national. Evaluation index system includes financial effect and technical effect what are reflected in the internal and external effects on defense industry influencing national economy.5. Discussing the effect of the defense industry. First, the economic effects of defense industry, including the direct economic effect of the defense industry, the economic services effect of the defense industry, the economic multiplier effect of the defense industry. Second, the technical effect of the defense industry, including technical elements effect of the defense industry, technology-driven effect of the defense industry, technology spillover effect of the defense industry.This article concluded that, through the above analysis, defense industry has a high correlation with national economy. Judging from the nature, defense industry is an important part of the national economy. And defense industry shares the basic, dominant and strategic position in national economy. Judging from the number, it's the linear relationship that defense spending and the total national economy to some extent. Other, there are also different degrees of forward linkage and backward linkage between defense industry and national economic sectors. Therefore, defense industry has different levels of promoting to the national economy sectors.