Military Expenditure and Economic Growth Empirical Evidence from Malaysia
Nur Surayya bt Mohd Saudi1, Ariffin bin Ismail2, Rogis bin Baker3, Saizal bin Pinjaman4, Aida Nasirah bin Abdullah5, Nurhana bin Mohamad Rafiuddin6, Amiruddin bin Sulaiman7
1Nur Surayya bt Mohd Saudi, Faculty of Defence Study and Management, Universiti Pertahanan Nasional Malaysia, Kuala Lumpur, Malaysia.
2Ariffin bin Ismail, Faculty of Defence Study and Management, Universiti Pertahanan Nasional Malaysia, Kuala Lumpur, Malaysia.
3Rogis bin Baker, Faculty of Defence Study and Management, Universiti Pertahanan Nasional Malaysia, Kuala Lumpur, Malaysia.
4Saizal bin Pinjaman, Faculty of Business, Economic and Accounting,Universiti Malaysia Sabah, Kota Kinabalu, Sabah, Malaysia.
5Aida Nasirah bin Abdullah, Faculty of Defence Study and Management, Universiti Pertahanan Nasional Malaysia, Kuala Lumpur, Malaysia.
6Nurhana bin Mohamad Rafiuddin, Faculty of Defence Study and Management, Universiti Pertahanan Nasional Malaysia, Kuala Lumpur, Malaysia.
7Amiruddin bin Sulaiman, Faculty of Defence Study and Management, Universiti Pertahanan Nasional Malaysia, Kuala Lumpur, Malaysia.
Manuscript received on 15 October 2019 | Revised Manuscript received on 21 October 2019 | Manuscript Published on 02 November 2019 | PP: 1-5 | Volume-8 Issue-2S9 September 2019 | Retrieval Number: B10030982S919/2019©BEIESP | DOI: 10.35940/ijrte.B1003.0982S919
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The relationship between military expenditure and economic growth has attract ample interest among economists as well as policy makers. The importance of expanding defence expenditure is substantially to coincide with national security and defence. The purpose of this study is to explore the impact of military expenditure on economic growth in Malaysia. An econometrics time series analysis is employed using ARDL estimates spanning from the year 1979 to 2017. The empirical findings reveal a negative relationship between military expenditure and Gross Domestic Products (GDP). Despite the inverse relationship between defence expenditure and economic growth, Malaysia should not neglect the investment on efficient military expenditure, as it has proven that in some countries, defence expenditure promotes a long run economic growth by promoting more job opportunities, protecting the nation and thus, achieving sustainable development. It is recommended to add more variables in future study that can relate security and defence for the country like numbers of crime, and numbers of migrants and refugees. Conclusively defence and security are the important factors for the country in generating the world and public’s confidence and to captivate foreign direct investment. Hence, adequate policy making on military expenditure are utmost important to promote economic growth.
Keywords: Military Expenditure; GDP; Security and Defence.
Scope of the Article: Social Sciences