Defense, Economic Growth and Energy Consumption in China


Bildirici M. E.

5th Istanbul Conference of Economics and Finance, İstanbul, Turkey, 6 - 07 June 2016, vol.38, pp.257-263 identifier

  • Publication Type: Conference Paper / Full Text
  • Volume: 38
  • Doi Number: 10.1016/s2212-5671(16)30197-6
  • City: İstanbul
  • Country: Turkey
  • Page Numbers: pp.257-263
  • Keywords: ARDL, Defense Expenditure, Economic Growth, Energy Consumption, Granger Causality

Abstract

This paper aimed to test the dynamic relationship between economic growth, energy consumption and defence expenditure in China for the period 1987-2013. It was used to the bounds test approach to cointegration developed by Pesaran et al. (2001) and it was determined whether there was a short and a long-run relationship among defence expenditure, energy consumption and economic growth. It was found that defence and energy consumption has a positive and a statistically significant impact on economic growth of China. Further, it was applied the Granger causality and it was determined a positive and a significant causal relation between variables. (C) 2016 The Authors. Published by Elsevier B.V.