Economics at your fingertips  

Symmetric and asymmetric relationships between renewable energy, oil imports, arms exports, military spending, and economic growth in China

Slim Ben Youssef ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper evaluates the symmetric and asymmetric relationships between military spending (MS) and oil imports (OIM) in China. For this purpose, we use the autoregressive distributed lag (ARDL) and the non-linear ARDL approaches, with annual data ranging from 1989 to 2016. In the long-run, MS increases OIM, renewable energy (RE) consumption, and gross domestic product (GDP). RE consumption increases arms exports (AE) and GDP but reduces OIM. Interestingly, OIM reduces AE and AE harm GDP. OIM seem to have a non-linear and asymmetric impact on MS both in the short- and long-run. In the long-run, an increase in OIM by 1% increases MS by 0.853%, while a reduction of OIM by 1% reduces MS by 1.467%. The cumulative dynamic multiplier effects indicate that China reacts very rapidly to positive shocks, but is very cautious about reducing its MS in the event of a negative shock. It appears that China is prompt to reduce considerably its MS whenever it is assured about its energy security. This could be partially achieved by increasing its RE consumption, and the military sector is invited to contribute especially through its R&D activities. This could lead to a cleaner environment and a more peaceful world.

Keywords: Renewable energy; oil imports; arms exports; military spending; non-linear and linear autoregressive distributed lag; China. (search for similar items in EconPapers)
JEL-codes: C32 H56 O53 Q42 (search for similar items in EconPapers)
Date: 2021-07-01
New Economics Papers: this item is included in nep-cna, nep-cwa, nep-ene and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) original version (application/pdf) revised version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

Page updated 2022-09-06
Handle: RePEc:pra:mprapa:111413