Energy Consumption and Economic Growth in South Asian Countries: A Co-integrated Panel Analysis
نویسندگان
چکیده
This study examines causal link between energy use and economic growth for five South Asian countries over period 1971-2006. Panel cointegration, ECM and FMOLS are applied for short and long run estimates. In short run unidirectional causality from per capita GDP to per capita energy consumption is found, but not vice versa. In long run one percent increase in per capita energy consumption tend to decrease 0.13 percent per capita GDP. i.e. Energy use discourage economic growth. This short and long run relationship indicate energy shortage crisis in South Asia due to increased energy use coupled with insufficient energy supply. Beside this long run estimated coefficient of error term suggest that short term adjustment to equilibrium are driven by adjustment back to long run equilibrium. Moreover, per capita energy consumption is responsive to adjustment back to equilibrium and it takes 59 years approximately. It specifies long run feedback between both variables. Keywords—Energy consumption, Income, Panel co-integration, Causality.
منابع مشابه
Causal relationship between trade openness, economic growth and energy consumption: A panel data analysis of Asian countries
This paper explores the causal relationship between economic growth, trade openness and energy consumption using data of 15 Asian countries. The study covers the period of 1980–2011. We have applied panel cointegration and causality approaches to examine the long-run and causal relationship between variables. Empirical results confirm the presence of cointegration between variables. The impact ...
متن کاملGreenhouse Gas Emissions, Energy Consumption and Economic Growth: A Panel Cointegration Analysis for 16 Asian Countries
This research investigates the co-movement and causality relationships between greenhouse gas emissions, energy consumption and economic growth for 16 Asian countries over the period 1990-2012. The empirical findings suggest that in the long run, bidirectional Granger causality between energy consumption, GDP and greenhouse gas emissions and between GDP, greenhouse gas emissions and energy cons...
متن کاملFDI and Bangladesh: A Study of South Asian Territories
Foreign Direct Investmentplays a crucial role in the economy of developing countries like Bangladesh through accelerating Gross Domestic Product (GDP), export and domestic investment followed by overall economic growth. The present scenario of FDI in Bangladesh in not still satisfactory enough but given the availability of abundant resources, skilled and cheap labor forces, a stable political a...
متن کاملThreshord Effect of the Economic Growth Rate on the Development of Renewable Energy: Evidences from OPEC Countries
This paper studies the non linear relationship between energy prices, natural resources rent opportunities and renewable energy consumption under different economic growth rates for OPEC member countries during the 2005-2016 period. Using a panel smooth transition regression (PSTR) model, our findings prove a non-linear relationship between renewable energy consumption and the rate of economi...
متن کامل