Proceedings of the 2016 International Conference on Humanities and Social Science

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

Authors
Xiaolei Zheng, Ji Ren, Zhijun Feng
Corresponding Author
Xiaolei Zheng
Available Online January 2016.
DOI
https://doi.org/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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Volume Title
Proceedings of the 2016 International Conference on Humanities and Social Science
Series
Advances in Social Science, Education and Humanities Research
Publication Date
January 2016
ISBN
10.2991/hss-26.2016.114
ISSN
2352-5398
DOI
https://doi.org/10.2991/hss-26.2016.114How to use a DOI?
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/).

Cite this article

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  - https://doi.org/10.2991/hss-26.2016.114
ID  - Zheng2016/01
ER  -