Energy Consumption and Economic Growth Nexus in Bangladesh

2019 ◽  
Vol 7 (6) ◽  
pp. 497-509 ◽  
Author(s):  
Swati Anindita Sarker ◽  
Shouyang Wang ◽  
K M Mehedi Adnan
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Empirical Investigation ◽  
Unit Root Test ◽  
Generalized Least Squares ◽  
Economic Progress ◽  
Integration Test ◽  
Augmented Dickey Fuller ◽  
Different Sources

Abstract The empirical investigation that examines the dynamics including the interaction between consumption of energy and economic progress has long been assessed. However, the interaction of these two in developing countries in general and Bangladesh, in particular, is a less explored subject. Hence, with this notion, this study examined the causal relationship among economic growth and energy consumption in Bangladesh. For this purpose, the study used energy consumption, gross domestic product (GDP), labor force, and capital data from 1981 to 2017 from different sources and data is analyzed by augmented Dickey-Fuller (ADF) unit root test, Johansen co-integration test and Granger test of causality. Results determine that energy consumption and economic growth have long term bi-directional relationship. The econometric model is estimated using generalized least squares (GLS) model. It is concluded that, consumption of energy and economic growth positively correlated and economic development highly depend on energy consumption in Bangladesh.

scholarly journals Research on the coordination of energy in China’s economic growth

PLoS ONE ◽  
2021 ◽  
Vol 16 (6) ◽  
pp. e0251824
Author(s):  
Yuanying Chi ◽  
Guoqing Bai ◽  
Jialin Li ◽  
Bin Chen
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Correction Term ◽  
Variance Decomposition ◽  
Short Term ◽  
Total Energy Consumption ◽  
Consumption Growth ◽  
Integration Test ◽  
Growth Economic

This study uses the improved Cobb-Douglas two-factor production function model to explore the potential relationship between economic growth and energy consumption through the multiple co-integration test on the panel data of China from 1985 to 2018. The results show that there is a positive long-term balance between energy consumption and economic growth: economic growth of 1%, total energy consumption growth of 1.53%, which means that economic growth needs higher energy support in the former short term. At the same time, the error correction term will converge energy consumption to a long-term equilibrium state with an adjustment intensity of 134.59%. From the results of variance decomposition, we can also see that as the number of periods increases, the part of real economic growth explained by energy consumption gradually increases.

scholarly journals Economic Growth And Unemployment: An Empirical Assessment of Okun’s Law In The Case of Liberia

2021 ◽  
Author(s):  
Kaiballah Conteh
Keyword(s):  
Economic Growth ◽  
Unit Root Test ◽  
Policy Implications ◽  
Causality Test ◽  
Flexible Labor ◽  
Long Run ◽  
Integration Test ◽  
Augmented Dickey Fuller ◽  
Auto Regressive ◽  
The Government

The aim of this research is to look at the relationship between economic growth and unemployment in Liberia from 2001 to 2019. To investigate the association between unemployment and Gross Domestic Product (GDP), the unit root test, the Augmented Dickey-Fuller (ADF) Co-integration test, and the Standard Granger Causality test were used. The Auto Regressive Distribution Lag (ARDL) bounds test is used to decide if the variables have a long run linkage. The ARDL model findings indicate that there is no long-run association between unemployment and economic growth. The findings of this analysis have especially significant policy implications for Liberian economic policymakers. The observational findings revealed a negligible association between unemployment and economic growth in both the long and short term. The Liberian government should redirect its spending toward activities that directly and indirectly promote the creation of employment and decent jobs, a conducive environment and flexible labor market policies or legislation that are not impediments to job creation should be created, and finally, the government should prioritize industries that promote labor intensive.

scholarly journals PUBLIC SPENDING AND ECONOMIC GROWTH PERFORMANCE: EVIDENCE FROM NIGERIA

2021 ◽  
Vol 9 (7) ◽  
pp. 1-14
Author(s):  
Oluyemi Ayodele Olonite ◽  
Sani U. Gurowa ◽  
Kamaluddeen Funsho Adisa Ibrahim ◽  
John Olorunleke Ajewole
Keyword(s):  
Economic Growth ◽  
Capital Expenditure ◽  
Public Spending ◽  
Unit Root Test ◽  
Secondary Data ◽  
Generalized Least Squares ◽  
Multiple Regression Model ◽  
Augmented Dickey Fuller ◽  
Negative Effect ◽  
The Government

This study analysed the relationship between public spending and economic growth in Nigeria. The study used the secondary data from CBN Statistical Bulletin from 2004 – 2018. The Real Gross Domestic Product formed the dependent variable and the independent variable of interest were the Capital Expenditure on Economic Services, and Expenditure of Transfers. The variables were validated by conducting the unit root test using the Augmented Dickey Fuller (ADF) and Phillips Perron Test (PP), and the correlation coefficient were determined using STATA and the Pearson Product Moment Correlation. A multiple regression model was employed for the study and was analysed using the Generalized Least Squares (GLSs) with the aid of Eviews 11 statistical program. The results of the study indicated that Capital Expenditure on Economic Services has a positive and significant impact on Economic Growth while Expenditure on Transfer has a negative and insignificant impact on Economic Growth. The study recommends that Capital Expenditure on Economic Services should be maintained and increased and Expenditure on Transfer should be made Zero, also, the government should develop the refineries to start mass production in order to null off the negative effect of transfers (subsidy payment on oil import and price equalization).

Energy consumption and economic growth nexus: Panel co-integration and causality tests for Sub-Saharan Africa

2014 ◽  
Vol 25 (4) ◽  
pp. 93-100 ◽  
Author(s):  
Basiru Oyeniran Fatai
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Unit Root Test ◽  
Sub Saharan Africa ◽  
Test Results ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Causality Tests ◽  
Sub Saharan ◽  
Different Sources

This study reassesses the causal relationships between energy consumption and economic growth in 18 Sub-Saharan Africa  countries over the period 1980-2011. The Panel Unit Root Test results show that variables (both exogenous and endogenous) are stationary at their first difference with individual effects and individual linear trends, while the results of panel co-integration tests show that energy consumption and economic growth do have a stable long-run equilibrium relationship. There is unidirectional causality from energy consumption to economic growth in East and the Southern Africa Sub-region, which supports the growth hypothesis. As a result, the related authorities in the regions should take a special interest in different sources of energy and invest more in this sector, make suitable policies in this regard and find new alternative and cheap sources of energy. But, there is no causality between energy consumption and economic growth in Central and the West Africa Sub-region, which is in line with the neutrality hypothesis. In other words, both energy consumption and economic growth are neutral with respect to each other. Our results confirm the inconclusive nature of a causality relationship between energy consumption and economic growth.

scholarly journals Economic Growth And Unemployment: An Empirical Assessment of Okun’s Law In The Case of Liberia

2021 ◽  
Author(s):  
Kaiballah Conteh
Keyword(s):  
Economic Growth ◽  
Unit Root Test ◽  
Policy Implications ◽  
Flexible Labor ◽  
Long Run ◽  
Study Results ◽  
Integration Test ◽  
Augmented Dickey Fuller ◽  
Auto Regressive ◽  
The Government

The purpose of this study is to examine the connection between economic growth and unemployment in Liberia between 2001 and 2019. The unit root test and the Augmented Dickey-Fuller (ADF) Co-integration test were used to examine the relationship between unemployment and GDP. The Auto Regressive Distribution Lag (ARDL) bounds test is used to determine if the variables are linked in the long run. According to the results of the ARDL model, there is no long-run relationship between unemployment and economic growth. This study' results have particularly important policy implications for Liberian economic authorities. In both the long and medium term, the observational results showed no meaningful relationship between unemployment and economic growth. The Liberian government should direct its spending toward activities that directly and indirectly promote the creation of employment and decent jobs, a conducive environment and flexible labor market policies or legislation that are not impediments to job creation, and finally, the government should prioritize labor intensive industries.

scholarly journals Efektivitas Fiskal - Moneter: Strategi Pemulihan Ekonomi Provinsi Riau Dalam Menghadapi Era New Normal

2021 ◽  
Vol 11 (1) ◽  
pp. 67
Author(s):  
Dwi Widiarsih ◽  
Ranti Darwin ◽  
Khairi Murdy
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
Money Supply ◽  
Government Spending ◽  
Empirical Test ◽  
Unit Root Test ◽  
Vector Error Correction ◽  
Augmented Dickey Fuller

This research use an empirical test of long-term balance and co-integration between macroeconomic variables, fiscal policy and monetary policy. Fiscal policy is represented by government spending variables, while monetary policy is represented by the money supply. This study uses the Vector Error Correction Model (VECM) method. The research variables are economic growth, government spending and the money supply. The research period uses the period 2010-2019. The data quality test used the unit root test with the Augmented Dickey Fuller test (ADF) method, to see the empirical data stationarity and the cointegration value of the variables. The research shows that the data is stationary in first difference. Based on the results of the VECM test, it can be concluded that there is a stable long-term relationship between variables and the research model. The results of data processing showed that the most effective policy for changing economic growth in Riau Province was fiscal policy, namely government spending. This can be seen from the contribution of fiscal policy to the variability of economic growth which is the largest compared to the contribution of monetary policy

scholarly journals Energy Consumption and Economic Growth Nexus in Pakistan

2021 ◽  
Vol 9 (3) ◽  
Author(s):  
Muhammad Ali Sindhu ◽  
Muhammad Abdul Quddus
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Unit Root ◽  
Energy Efficient ◽  
Unit Root Test ◽  
Long Run ◽  
Augmented Dickey Fuller ◽  
Bound Test ◽  
The Relationship ◽  
Ardl Bound Test

The study explored the link between energy consumption and economic growth in Pakistan covering the period from 1980 to 2018. This study used an augmented production function and combined the two neo-classical and ecological points. Most important is that this study used three different proxies of energy to check whether the relationship is proxy specific or not in Pakistan. Furthermore, there are some controls in terms of trade and foreign direct investment to check the robustness of the relationship. The time series approaches as augmented dickey fuller (ADF) unit root test and ARDL bound test approach has applied. The results indicated the long-run positive relationship between energy and growth in Pakistan and the relationship is not proxy specific. Therefore, it has suggested enhancing energy efficient policies, better resource allocation for energy supply.

scholarly journals Causality Relationship between Export and Economic Growth: The Case of Russia

2015 ◽  
Author(s):  
Özgür Uysal ◽  
Sultan Sat
Keyword(s):  
Economic Growth ◽  
Unit Root Test ◽  
Growth Data ◽  
Causality Test ◽  
Integration Test ◽  
Augmented Dickey Fuller ◽  
Last Stage ◽  
Causality Relationship ◽  
The Stability ◽  
The Relationship

Nowadays, together with the process of globalization, the relation between export and economic growth has begun to gain importance when decisions regarding economic situation of a country are taken, and when estimations concerning economy are made. The relation between economic growth and export has become one of the most disputable issues of the economic literature. The main objective of this study is to find out the direction of the relation between export and economic growth in Russia. Analysis was performed by using quarterly export and economic growth data of belonging from 1997:01 to 2014:04.The stability of the variables was initially determined by using Augmented Dickey – Fuller (ADF) unit root test. Subsequently, the existence of co-integration between variables was investigated by using Johansen Co–integration Test. In the last stage, the direction of the relationship between variables was determined by using Granger Causality Test. As a result of the analyses carried out, it was determined that bi-directional causality exists between export and economic growth in Russia between the years 1997-2014.

Empirical Research of the Relationship between Energy Consumption and Economic Growth in Beijing

2014 ◽  
Vol 962-965 ◽  
pp. 2220-2224
Author(s):  
Jie Yang
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Causal Relationship ◽  
Causality Test ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Integration Test ◽  
The Relationship

This paper investigates the dynamic causal relationship between energy consumption and economic growth in Beijing over the period 1980-2012. The Johansen co-integration test, Granger causality test and the vector error correction model (VECM) are used to calculate the causal relationship between energy consumption and economic growth. The conclusion is that there exists a co-integration relationship between energy consumption and economic growth, and this relationship is a one way relationship from economic growth to energy consumption. Further, using VECM, the long-term and short-term elasticity from economy to energy consumption are 0.43 and 0.14 separately. Statistical analysis shows that, from 1980 to 2011, every 1% growth in GDP annually would drive energy consumption increasing rate by 0.43% correspondently.

scholarly journals Empirical Research on the Relationship amongst Renewable Energy Consumption, Economic Growth and Foreign Direct Investment in Kazakhstan and Uzbekistan

Energies ◽  
2021 ◽  
Vol 14 (2) ◽  
pp. 332
Author(s):  
Janusz Grabara ◽  
Arsen Tleppayev ◽  
Malika Dabylova ◽  
Leonardus W. W. Mihardjo ◽  
Zdzisława Dacko-Pikiewicz
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Direct Investment ◽  
Renewable Energy Sources ◽  
Energy Sources ◽  
Renewable Energy Consumption ◽  
Integration Test ◽  
The Relationship

In this contemporary era, environmental problems spread at different levels in all countries of the world. Economic growth does not just depend on prioritizing the environment or improving the environmental situation. If the foreign direct investment is directed to the polluting industries, they will increase pollution and damage the environment. The purpose of the study is to consider the relationship between foreign direct investment in Kazakhstan and Uzbekistan and economic growth and renewable energy consumption. The study is based on data obtained from 1992 to 2018. The results show that there is a two-way link between foreign direct investment and renewable energy consumption in the considered two countries. The Granger causality test approach is applied to explore the causal relationship between the variables. The Johansen co-integration test approach is also employed to test for a relationship. The empirical results verify the existence of co-integration between the series. The main factors influencing renewable energy are economic growth and electricity consumption. To reduce dependence on fuel-based energy sources, Kazakhstan and Uzbekistan need to attract energy to renewable energy sources and implement energy efficiency based on rapid progress. This is because renewable energy sources play the role of an engine that stimulates the production process in the economy for all countries.

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