REINVESTIGATING THE IMPACT OF GROSS DOMESTIC SAVINGS, EXCHANGE RATES, AND NATIONAL DEBT ON MILITARY EXPENDITURE IN MALAYSIA

Abstract

This study uses the ARDL method to explore how national debt relates to military expenditure, considering both short and long timeframes. In the short term, the research finds that changes in national debt don't strongly impact military expenditure right away. Interestingly, a stronger national currency is associated with lower short-term military expenditure. Additionally, higher domestic savings positively affect military expenditure in the short term, highlighting the role of local resources. In the long term, the study shows that all considered factors such as national debt, exchange rates, and domestic savings are positively contributed to military expenditure. This suggests that over time, increases in these factors are linked to higher military expenditure. Overall, the study highlights the complex connections between national debt, economic factors, and military expenditure, offering insights into both immediate and long-term influences on defense budget choices.