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, (Full Text)

  • 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
  • Yıldız Technical University Affiliated: Yes

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.