Economics Model Analysis of Defence Expenditure and Economic Growth in the US

DOI

10.2991/hss-26.2016.114How to use a DOI?

Keywords

Defence expenditure, Economic growth, ADF test, Cointegration analysis, Grainger causality test.

Abstract

This paper expounds on the relationship between defence expenditure and economic growth. By selecting defence expenditure and economic indicators including GDP, gross value of imports and exports, fuel import and export value and foreign direct investment in the US from 1991 to 2010 as sample spaces, the paper is modeled on some analytical methods as ADF test, cointegration analysis and Grainger causality test. The paper analyzes the long-term equilibrium relationship between defence expenditure and economic growth, concluding that economic growth is the Granger cause of defence expenditure growth. Meanwhile, defence expenditure growth will have a positive impact on economic growth.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Xiaolei Zheng
AU  - Ji Ren
AU  - Zhijun Feng
PY  - 2016/01
DA  - 2016/01
TI  - Economics Model Analysis of Defence Expenditure and Economic Growth in the US
BT  - Proceedings of the 2016 International Conference on Humanities and Social Science
PB  - Atlantis Press
SP  - 678
EP  - 683
SN  - 2352-5398
UR  - https://doi.org/10.2991/hss-26.2016.114
DO  - 10.2991/hss-26.2016.114
ID  - Zheng2016/01
ER  -