Energy Consumption and Economic Growth Linkage: Global Evidence from Symmetric and Asymmetric Simulations

Abstract The literature reveals that linear models do not accurately represent the asymmetric relationship between economic growth and energy consumption (EC). To fill this gap, we examined EC in a non-linear panel autoregressive distributed lag (ARDL) framework of 85 countries as whole sample Brazil, Russia, India, China, South Africa (BRICS), Next Eleven, Big Four Western Europe, Asia-Pacific region, Group Seven, Asian Association for Regional Cooperation (SAARC), Economic Organization (ECO) Arab League sub-sample analysis from 1977 to 2014. A second generational unit root test has been applied check problem cross-sectional dependency. Asymmetric co-integration was employed analyse variables interest. Long-run short-run estimates have calculated using ARDL method. Results indicate positive shocks use tend growth-enhancing effect ECO Eleven while rest regions, is contraction. Moreover, recovery shock case League, Seven sample. However, negative observed Asia Pacific Europe ECO, worsens We can deduct study’s results information on subject needed design sound policy decisions across different regions.