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.
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Rahawarin, M.F., Octavian, A., Halim, S. (2018). The Dynamic Relationship of Defense Expenditure, Energy Consumption, and Economic Growth in Indonesia. In: Tsounis, N., Vlachvei, A. (eds) Advances in Time Series Data Methods in Applied Economic Research. ICOAE 2018. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-02194-8_17
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DOI: https://doi.org/10.1007/978-3-030-02194-8_17
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