CAUSALITY AMONG ENERGY PRICE, TRADE OPENNESS AND ECONOMIC GROWTH IN EMERGING COUNTRIES: A PANEL COINTEGRATION ANALYSIS

This paper investigates the possible existence of dynamic causality between energy price, trade openness and economic growth using data thirty-six emerging economies over period 1980 to 2014. Panel unit root tests, panel cointegration, fully modified least squares (FMOLS) methods tests are used investigate this relationship. The FMOLS estimation reveals that higher international reserve, consumption increase growth, whereas price leads lower GDP growth. results also indicate there is a short-run unidirectional running from Moreover, bidirectional operated total consumption. major policy implication based on general result study economy should take necessary steps in making management policies basis causal relationship variables.