IMPACT OF DEFENSE INDUSTRY PRODUCTION FROM ROMANIA TO GDP
IMPACT OF DEFENSE INDUSTRY PRODUCTION FROM ROMANIA TO GDP

Author(s): Florin Şuhan
Subject(s): Economy
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: defense industry; GDP; assets; capital; profit;
Summary/Abstract: The defense industry is a component of the national industry having, like the other branches of industry, the purpose of making a relevant contribution to the constitution of the gross domestic product. The more efficient a field of activity in the national economy is, the more it generates gross domestic product. In order to know and quantify the performance of the defense industry, we ask ourselves the question: how does the activity of defense contractors influence the gross domestic product? For this purpose, we carry out an investigation through the scientific method, using a database consisting of economic and financial information of economic operators in the field of defense industry in Romania. The working methods used are documentary research and the quantitative component materialized by a multiple linear regression model. The quantitative component is applied on a database corresponding to the period 2008 - 2018, being statistically processed by specialized software. Based on the interpretation of the links identified between the selected variables, we appreciate that the development of a multiple linear regression model with 5 variables in order to investigate the relationship between the results of defense contractors and the gross domestic product led to knowledge and reasonable quantification of defense industry performance. The correlation of the gross domestic product with the economic-financial indicators of capital and profit shows the significance of the field and the importance of supporting the production activity.

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