The Dynamic Relationship of Defense Expenditure, Energy Consumption, and Economic Growth in Indonesia

Muhammad Fikruzzaman Rahawarin (), Amarulla Octavian () and Supandi Halim ()
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Muhammad Fikruzzaman Rahawarin: Indonesia Defense University
Amarulla Octavian: Indonesia Defense University
Supandi Halim: Indonesia Defense University

Chapter Chapter 17 in Advances in Time Series Data Methods in Applied Economic Research, 2018, pp 223-233 from Springer

Abstract: Abstract It has been understood that energy consumption and defense expenditure have an impact on economic growth. However, it is still unclear which aspect has a bigger effect towards another, especially in each country. This study aims to analyze causal relationship amongst those aspects in Indonesia for a period of 1986–2016. Auto-regressive Distributed Lag (ARDL) bound testing approach was used to determine the co-integration in the short-run and the long-run. The result shows that co-integration exist within economic growth and energy consumption, while Granger Causality also exists between defense expenditure to economic growth and economic growth towards energy consumption.

Keywords: ARDL; Bound test; Defense expenditure; Economic growth; Energy consumption; Granger causality (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-030-02194-8_17

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DOI: 10.1007/978-3-030-02194-8_17

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