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PAGE IV
Abstract
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.
Based on the relevance of defense industry and national economy, this paper demonstrates the defense industrys position in the national economy, defensing the five contributions that industry made in the national economy.
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 Chinas defense industry.
The paper discusses briefly the history of Chinas defense industry reforms and the status quo. Through the use of econometric formula, the paper analyzes quantitative of Chinas 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×DS
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 nations economic potential psychological effec
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