The causal nexus between economic growth and energy consumption: new evidence from global panel of 53 countries

Saidi, Kais and Rahman, Mohammad Mafizur and Amamri, Mounira (2017) The causal nexus between economic growth and energy consumption: new evidence from global panel of 53 countries. Sustainable Cities and Society, 33. pp. 45-56. ISSN 2210-6707

Abstract

This study investigates the causal relationship between energy consumption and economic growth on a global
panel of 53 countries. Using the panel data for the period of 1990–2014, the direction of causality between these two variables is also explored. The panel co-integration technique is used to reveal the long-term relationship between variables and the Vector error correction model (VECM) is applied to determine the direction of causality in the short and long-terms. The results show that there is a long run positive relationship between economic growth and energy consumption. The causality results reveal that there is a bidirectional Granger causality between economic growth and energy consumption and between economic growth and FDI for the global panel both in the short and long runs. Separately, the same results are also observed for the American countries. For African and Middle East countries; a short and long-run bidirectional causality between energy consumption and economic growth is found. A unidirectional causality from energy consumption to economic growth is found for the European countries both in the short and long runs. For the European, African and
Middle East countries, only short and long-runs unidirectional causality running from FDI to economic growth is revealed.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to Published version, in accordance with the copyright policy of the publisher.
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 04 Sep 2017 23:24
Last Modified: 03 Oct 2017 04:22
Uncontrolled Keywords: panel co-integration, energy consumption, economic growth, VECM
Fields of Research : 14 Economics > 1402 Applied Economics > 140205 Environment and Resource Economics
14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
14 Economics > 1403 Econometrics > 140304 Panel Data Analysis
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9101 Macroeconomics > 910103 Economic Growth
D Environment > 96 Environment > 9606 Environmental and Natural Resource Evaluation > 960699 Environmental and Natural Resource Evaluation not elsewhere classified
Identification Number or DOI: 10.1016/j.scs.2017.05.013
URI: http://eprints.usq.edu.au/id/eprint/33059

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