The Research Of Defense Expenditure In Our Country Based On Markov Switching Model And Its Impact On The Economy

As an important component of national public spending, defence expenditure is thenational finance expense for the national defense construction, the people’s liberation army andarmed police force, which is our country financial guarantee to strengthen the construction oftroops and the modernization of national defense, it occupies an important position in the macroeconomy. Our country is a high economic growth of developing countries, peripheral securityenvironment is very complex, so how to allocate resources reasonably and arrange defensespending to make it can not only meet the need of national defense security and to a great extentcan promote the economic development, which is one of the most important decisions in thecountry.It is a great significance for the defense policy formulation and overall planning ofdefense spending to in-depth understand China’s defense spending, and the relationship betweeneconomic growth and defense spending.This paper focuses on characteristics of China’s defense expenditure and the relationshipbetween economic growth. First, we study the defence spending fluctuation situation in ourcountry by using the markov switching model of nonlinear system, the defence spendinggrowth (including positive and negative) the size of the fluctuations is divided into two classes,and through the study state transition matrix in different periods, we have a joint analysisbetween the rate change of size in different growth period and the influencing factors ofdefence spending for investigating the characteristics of changes in defence spending in China.Second, three departments model, co-integration analysis, a mathematical model analysisand simulation analysis methods were used respectively to study the defence spending impacton economic growth, and through theoretical derivation, modeling, data modeling, theempirical analysis, the related conclusion steps we get the basic conclusions, we can putforward relevant opinions and Suggestions on this basis.Further, through this study and related conclusions, we hope that we can provide certaintheoretical basis for the coordinated development of national defense construction andeconomic construction.