Symmetric and Asymmetric Relationships Between Renewable Energy, Oil Imports, Arms Exports, Military Spending, and Economic Growth in China

Abstract

This paper evaluates the symmetric and asymmetric relationships between military spending (MS) and oil imports (OIM) in China. In the long run, MS increases OIM, renewable energy (RE) consumption, and gross domestic product. OIM seem to have a non-linear and asymmetric impact on MS, both in the short run and the long run. It appears that China is prompt to reduce its MS considerably whenever it is assured of its energy security. This could be partially achieved by increasing its RE consumption, and the military sector is invited to contribute, especially through its R&D activities.