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

  • Muhammad Fikruzzaman RahawarinEmail author
  • Amarulla Octavian
  • Supandi Halim
Conference paper
Part of the Springer Proceedings in Business and Economics book series (SPBE)

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 

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Copyright information

© Springer Nature Switzerland AG 2018

Authors and Affiliations

  • Muhammad Fikruzzaman Rahawarin
    • 1
    Email author
  • Amarulla Octavian
    • 1
  • Supandi Halim
    • 1
  1. 1.Faculty of Defense ManagementIndonesia Defense UniversityBogorIndonesia

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