Sustainable Economic Growth and Energy Security in China: Implications on Regional Economic Order

Asian economies and China as major economic actors in terms of both regional and global economy are in the process of economic stagnation for now. Therefore, it is expected a sharp decrease in energy demand –that has continued since 1990sof Asian economies which will be directly affected by export and investment flows. In this context, first of all, the literature on the relation between economic growth and energy consumption of China and ASEAN countries and possible consequences of these relations are assessed within the context of the data. As a result of the panel data analysis for 1990-2015 period, although the relationship between energy consumption and growth in many developed countries is weakening, the relationship in ASEAN countries is still strong. Therefore, the decline in China's energy consumption may result in a narrowing of the region.