[ABSTRAKPenelitian ini menguji apakah terjadi crowding out antara investasi dengan belanja pertahanan di Indonesia pada periode 1974-2012. Spesifikasi model yang digunakan merujuk model Atesoglu (2004) dengan teknik estimasi OLS pendekatan time series. Hasilnya menunjukan bahwa belanja pertahanan memiliki hubungan tidak signifikan dengan investasi. Hal ini disebabkan oleh perbedaan struktur industri pertahanan Indonesia dengan industri pertahanan dunia dan terbatasnya pesanan alutsista dari Pemerintah Indonesia kepada industri pertahanan nasional.

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ABSTRACT

;This study tests the crowding out between defense expenditure and investment

in Indonesia during 1974-2012. This research use Atesoglu?s model and was

estimated using OLS technique with time series approach. Result shows that there is

no crowding out between defense expenditure and investment in Indonesia. The

relationship can be explained by the difference of defense industrial structure in

Indonesia and limitations of order from Government of Indonesia to defense

companies in Indonesia., This study tests the crowding out between defense expenditure and investment

in Indonesia during 1974-2012. This research use Atesoglu?s model and was

estimated using OLS technique with time series approach. Result shows that there is

no crowding out between defense expenditure and investment in Indonesia. The

relationship can be explained by the difference of defense industrial structure in

Indonesia and limitations of order from Government of Indonesia to defense

companies in Indonesia.]