This paper presents an analysis of the empirical relationship between stock returns, industrial production, money supply, inflation and interest rates across five countries-Canada, France, Japan, Taiwan and the USA. Specifically, we estimate a five-variable vector autoregression model in order...

This paper employs both linear and non-linear models to investigate the relationship between national defense spending and economic growth for Taiwan and China. Using data from 1953-2000 on defense spending, GDP, import, export and capital, we find that China's defense spending leads that of...