Research On The Forming, Developing And Effect Of The Locational Shift Of The Defense Industry

This thesis is a study on the impact of defense spending on American economic growth, especially on the less developed areas through the historical review of the shift and the comparative analysis of the space. The paper focuses on discussing three important factors which cause the shift, namely, the national strategy, the feature of military production and the influence of interest groups. At the same time, the effect of the shift is reviewed in general, including the negative effects and positive effects. The author concludes that defense spending has significant effects on the economic growth of the whole nation during the shift.The paper is to analyze both economic causes of the shift and other causes, i.e. political factor, national strategic factor and political structure factor. The main purpose is to explore how the fiscal expenditure promotes the coordinated development of defence economy and national economy and brings the economic growth to the less developed area. We expect to find applicable rules through the discussion on the locational shift of American defense industry to instruct the practice of Chinese defence industry.The paper has some new ideas. Firstly, it takes a comprehensive discussion on the issue in China. Secondly, its new idea lies in the integration of the theories of defence economics, regional economics and public economics, which makes its analysis more practical. Finally, taking the shift for example, the paper analyzes the relations between defense spending and economic growth. And even it puts forward the positive effect of the defence spending on the less developed area.