The Study of the optimal level of National Defense Budget in Taiwan

• Main Authors: Tai-chen Cha, 查台傳
• Other Authors: 蘇彩足
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/73716664500800649036

碩士 === 國立臺灣大學 === 政治學研究所 === 93 === Not only in the early of 60’s had the National Defense Budget been over the half of GDP, but also lately the total amount of 6,108 billion of the special National Defense Budget has drawn the public attention since such issue has become the most controversial, but less understanding topic. The purpose of this paper is to discuss the appropriate ratio of National Defense Budget to the GDP by considering the following four factors: threatening degree, area conflict, military strength power and economic strength. This paper compares all the data by the same scenario of the four different factors mentioned above from the hard data of 25 countries in the past 15 years and concludes that the appropriate ratio of our National Defense Budget to GDP is in the range of 3.1% ~ 4%. Also the model of this paper, including the four factors to develop a regression model to predict the reasonable ratio of National Defense Budget, figures out three out of four factors, threatening degree, military strength power and economic growth show significant correlation with the dependant variables. But, the unexpected result of the regression model reveals that the relation between economic growth and the ratio of National Defense Budget is negative correlation. Such result can be part of suggestions to those who are interested in this field. Finally, the study discovers that with decrease of the National Defense Budget for the main countries in the world, the appropriate ratio of National Defense Budget should adopt the lower bound. But considering the rising-up super power of China and its big proportion of GDP investment in the field of military to increase threatening situation, the reasonable scale of our National Defense Budget should be properly adjusted to a higher ratio.