Linking energy consumption with economic growth: Rwanda as a case study

2021 ◽  
pp. 181-200
Author(s):  
Gerard Bikorimana ◽  
Charles Rutikanga ◽  
Didier Mwizerwa
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Granger Causality ◽  
Granger Causality Test ◽  
Causality Test ◽  
Ardl Bounds Test ◽  
Causal Direction ◽  
Bounds Test ◽  
Toda And Yamamoto

This paper analyzes the link between energy consumption and economic growth in Rwanda for the period 1985-2017. The ARDL bounds test was used to test for the existence of co-integration, while the Toda and Yamamoto granger causality test was applied to test for causal direction. The results from the estimation of the ARDL bounds test showed that there was no evidence of co-integration between the considered variables under study. Additionally, the empirical findings confirmed that there was no relationship between economic growth and energy consumption in Rwanda. The findings supported the "neutrality hypothesis" between energy consumption and economic growth. This implies that neither conservative nor expansive policies in relation to energy consumption have any effect on economic growth. Furthermore, the study found a uni-directional granger causality running from energy consumption to economic growth. The results of this findings are consistent with the "growth hypothesis" which postulates that energy consumption leads to economic growth

scholarly journals Petroleum Consumption and Financial Development in Malaysia

2016 ◽  
Author(s):  
Jen-Eem Chen ◽  
Yan-Ling Tan ◽  
Chin-Yu Lee ◽  
Lim-Thye Goh
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Granger Causality ◽  
Financial Development ◽  
Granger Causality Test ◽  
Financial Sector ◽  
Causality Test ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run

This paper aims to contribute to the existing literature by examining the dynamic relationship among petroleum consumption, financial development, economic growth and energy price. The sample of this study is based on the Malaysian annual data from 1980 to 2010. The model specification was examined in the Autoregressive Distributed Lag (ARDL) framework and the results revealed the existence of a long-run equilibrium. The findings indicated that financial development and economic growth cause a demand for energy to escalate in the long run. The Toda-Yamamoto (TYDL) non Granger-causality test provides evidence that there is unidirectional Granger-causality running from financial development and economic growth to energy consumption in the long run. This suggests that Malaysia is not an energy-dependent country. Hence, the government could implement energy conservation policies to reduce the waste of energy use. Given that development in the financial sector, and economic growth increase petroleum consumption in Malaysia, the policies pertaining to energy consumption should incorporate the development of the financial sector and economic growth of country.   Keywords: Petroleum consumption, financial development, non-renewable energy, Autoregressive Distributed Lag (ARDL), Toda-Yamamoto (TYDL) non Granger-causality test

Study of the Relationship among Economic Growth, Export and Energy Consumption in China

2014 ◽  
Vol 694 ◽  
pp. 542-546
Author(s):  
Xiao Wei Yang
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Granger Causality ◽  
Granger Causality Test ◽  
Analytical Framework ◽  
Test Method ◽  
Causality Test ◽  
Equilibrium Relationship ◽  
The Relationship

This paper uses co-integration theories and Granger causality test method to analyze the inter-linkages among China's economic growth, export and energy consumption within a unified analytical framework. The results show that there exists a long-term equilibrium relationship between economic growth, exports and energy consumption, and economic growth and exports both promote energy consumption in the long term. Furthermore, there exist bi-directional Granger causality between economic growth and energy consumption, export and energy consumption respectively.

scholarly journals Export, Energy Consumption and Economic Growth Inter-Linkages: The Case of Lithuania

2017 ◽  
Vol 64 (3) ◽  
pp. 395-410 ◽  
Author(s):  
Gitana Dudzevičiūtė ◽  
Agnė Šimelytė
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Granger Causality ◽  
Time Series Data ◽  
Granger Causality Test ◽  
Series Data ◽  
Causality Test ◽  
Data Set ◽  
Policy Makers ◽  
Future Policy

Abstract This paper has aimed to examine the causal relationships between energy consumption – economic growth, export – energy consumption and export – economic growth in Lithuania during the period of 1998 – 2015. Descriptive statistics analysis and econometric techniques have been applied for this purpose. Granger causality test has been used to a time series data set to determine the causality between variables. The results of Granger causality test have shown unidirectional causality running from GDP to energy consumption, from export to GDP and from export to energy consumption. It is obvious that GDP and export play significant roles in accelerating energy consumption in Lithuania. The determination of the causal links between energy consumption – economic growth, export – economic growth and energy consumption – export has provided policy makers with the main insights to formulate future policy directions for sustainable economic development in Lithuania.

scholarly journals A Causal Nexus of Energy Consumption, Private Investment, Economic Growth and Environmental Degradation: Evidence from Pakistan

2020 ◽  
Vol 6 (2) ◽  
pp. 367-376
Author(s):  
Shabana Parveen ◽  
Hazrat Ali ◽  
Habib Elahi Sahibzada ◽  
Sohail Farooq
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Granger Causality ◽  
Co2 Emissions ◽  
Environmental Degradation ◽  
Private Investment ◽  
Granger Causality Test ◽  
Var Model ◽  
Causality Test ◽  
Policy Makers

The importance of private investment in the growth process of a country cannot be denied, however, its relationship with environmental degradation has not got much attention from researchers yet. The present study is an attempt to divert the attention of researchers and policy makers to the association with private investment and environmental degradation.  The time series data was used from 1975 to 2017. The data was taken from WDI. To analyze the causal link among environmental degradation, private investment, energy consumption and economic growth, Vector Autoregressive (VAR) model is used. Granger causality test is employed for knowing the course of causality in the variables. The results of the VAR model suggest that if an innovation of one standard deviation occurs from outside, it takes about 12 years for CO2 emissions, 9 years for private investment, 10 years for energy consumption and about 8years for economic growth to adjust. Moreover, the results show that most of the variation in all variables is explained by their own. Granger causality test identifies four unilateral causalities in the variables running from CO2 emissions to economic growth while the consumption of energy to CO2 emissions, energy consumption to economic growth while  from economic growth to private investment. The study recommends policy makers to make environmental friendly policies regarding consumption of energy, private investment and also economic growth.

scholarly journals Bidirectional Relationship between Stock Market Decline and Liquidity: A Study of Emerged & Emerging Economies

2021 ◽  
Vol 7 (1) ◽  
pp. 37-50
Author(s):  
Maria Shams Khakwani ◽  
Rehana Kouser
Keyword(s):  
Stock Market ◽  
Granger Causality ◽  
Emerging Economies ◽  
Granger Causality Test ◽  
Market Liquidity ◽  
Causality Test ◽  
Significance Level ◽  
Market Return ◽  
Ardl Bounds Test ◽  
Bounds Test

This study intends to examine the nature & direction of relationship between stock market movements, particularly market decline, and its liquidity in 14 selected emerged and emerging economies (G8+5 and Pakistan) for January 2001 through December 2017 by applying Autoregressive Distributed Lag (ARDL) Bounds test and Granger-causality test. Trading value and turn over ratio are employed to measure market liquidity. Results of trading value Granger-causality test highlight the evidence of no causality in Germany & India. Bi-directional causality exists in Pakistan only. Uni-directional causality subsists only in Russia at 10% significance level from trading value to market return. However, from market return to trading value, results demonstrate the presence of uni-directional causality at 5% significance level for Brazil, Japan. Canada, China, France, Italy, UK, USA, South Africa and Mexico. Negative returns are used to represent the notion of market decline. The results exhibited by both proxies of liquidity demonstrate that two-way association exists between stock market decline and liquidity in the long term. Thus co-integration in long-run is suggested by ARDL bounds test at 1% significance level for all the emerging and emerged countries in the sample.

The Analysis of Energy Consumption and Economic Growth in China

2011 ◽  
Vol 361-363 ◽  
pp. 1708-1712
Author(s):  
Su He ◽  
Ming Ming Chang
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Energy Consumption ◽  
Granger Causality ◽  
Granger Causality Test ◽  
Causality Test ◽  
The Relationship ◽  
Cointegration Relationship ◽  
Reasonable Energy

This paper analyses the relationship between China's economic growth and energy consumption of the period 1978-2009 by the Granger causality test. The results of the study show that: economic growth and energy consumption have cointegration relationship, energy consumption promote economic growth, but economic growth is not Granger caused the consumption of energy. In order to promote China's economic development, the reasonable energy consumption quantity must be found, It's a new topic.

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