Paper Title :The Empirical Analysis of the Relationship Between Military Expenditure and Economic Growth in Asean Countries
Author :Jaka Sastrawan Rk, Ming-Hung Yao
Article Citation :Jaka Sastrawan Rk ,Ming-Hung Yao ,
(2018 ) " The Empirical Analysis of the Relationship Between Military Expenditure and Economic Growth in Asean Countries " ,
International Journal of Management and Applied Science (IJMAS) ,
pp. 68-72,
Volume-4,Issue-10
Abstract : This paper aims at investigating the relationship between military expenditure and economic growth in nine
ASEAN countries using annual data from 2000 to 2015. The variables include military expenditure, employee, investment
and economic growth. Four unit root test results indicate that data are stationary in the first difference I(1). Pedroni (2004)
test results show there is an existence of cointegration among the variables. Furthermore, we conduct FMOLS (fully
modified ordinary least squares) and DOLS (dynamic ordinary least squares) to know whether there is a long-run effect from
variables to economic growth. Both FMOLS and DOLS tests show that the variables have a significant positive impact on
economic growth. In addition, VECM test results show that military expenditure and investment have short-run direct effect
to GDP. Meanwhile, error correction term results indicate that a bidirectional flow happens between GDP and military
expenditure. From policy perspective, our results support the argument that military expenditure has influence to economic
growth.
Keywords- economic growth, military expenditure, ASEAN, panel data analysis
Type : Research paper
Published : Volume-4,Issue-10
DOIONLINE NO - IJMAS-IRAJ-DOIONLINE-13967
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Copyright: © Institute of Research and Journals
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Published on 2018-12-28 |
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