NON-LINEARITY IN THE DEFENCE EXPENDITURE - ECONOMIC GROWTH RELATIONSHIP IN TAIWAN

• Published in: Defence and peace economics Vol. 18; no. 6; pp. 537 - 555
• Main Authors: Lee, Chien-Chiang, Chen, Sheng-Tung
• Format: Journal Article
• Language: English
• Published: Switzerland Routledge 01.12.2007; Taylor and Francis Journals; Taylor & Francis LLC
• Series: Defence and Peace Economics
• Subjects: Defence expenditure; Defense; Defense spending; Economic growth; Economic models; Expenditures; Externality; Non-linearity; Production functions; Regression analysis; Studies; Threshold regression model; Taiwan

To gain better insight into the debate concerning the relationship between defence expenditure and economic growth, this paper empirically applies Hansen's ( 1996 ) threshold regression model to examine the threshold effect between the two variables. Allowing defence expenditure to have a non-l...