Energy use, international trade and economic growth nexus in Australia: new evidence from an extended growth model

Rahman, Mohammad Mafizur and Mamun, Shamsul Arifeen Khan (2016) Energy use, international trade and economic growth nexus in Australia: new evidence from an extended growth model. Renewable and Sustainable Energy Reviews , 64. pp. 806-816. ISSN 1364-0321

Abstract

This study investigates the existence of either energy-led growth hypothesis or trade-led growth in Australia for a 53-year period (1960–2012) using a multivariate extended growth model. The econometric techniques used in this study are Autoregressive Distributed Lag (ARDL) bounds testing approach of cointegration, the Granger Causality Test and Impulse Response Functions. The study finds the evidence of no long-run cointegration between the variables of interest. Granger causality test confirms bidirectional causal relationship between international trade and per capita GDP growth, but does not find any Granger causal relationship between energy use and per capita GDP growth. Thus, this study provides an evidence of the trade-led growth hypothesis over the energy-led growth hypothesis for the Australian macroeconomy.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Tied first place winner for the USQ School-Specific 2016 Publication Excellence Awards for Journal Articles - School of Commerce. Permanent restricted access to Published version in accordance with the copyright policy of the publisher. URL link valid until 03 September 2016.
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 19 Jul 2016 02:49
Last Modified: 06 Apr 2017 02:30
Uncontrolled Keywords: energy use; international trade; economic growth; Australia
Fields of Research : 14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
14 Economics > 1402 Applied Economics > 140205 Environment and Resource Economics
14 Economics > 1402 Applied Economics > 140210 International Economics and International Finance
14 Economics > 1403 Econometrics > 140305 Time-Series Analysis
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9103 International Trade > 910399 International Trade not elsewhere classified
B Economic Development > 85 Energy > 8598 Environmentally Sustainable Energy Activities > 859899 Environmentally Sustainable Energy Activities not elsewhere classified
Identification Number or DOI: 10.1016/j.rser.2016.06.039
URI: http://eprints.usq.edu.au/id/eprint/29469

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