scholarly journals Causal Relationship Between Economic Growth and Energy Consumption in Jordan

2022 ◽  
Vol 1 (1) ◽  
pp. 102-112
Author(s):  
Ali Matar
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Causal Relationship ◽  
Agricultural Land ◽  
Time Series Data ◽  
Recent Decade ◽  
Series Data ◽  
Causality Test ◽  
Crisis Events ◽  
Per Capita

Due to the current situation of the Jordanian economy, this paper aims to evaluate the impacts of economic growth on energy consumption in a developing country like Jordan, a country with limited resources such as oil, agricultural land, and water. This study is very important since the energy bill reflects a notable share in the GDP for Jordan, especially in the recent decade that witnessed energy bills rising due to different political and financial crisis events. The study investigates the causal relationship between the per capita energy consumption and economic growth (proxied by real gross domestic product per capita in constant prices) over the 1975-2011 period. A Granger causality test is utilized on annual time series data. The results of the study confirm a neutral relationship between real GDP and energy consumption, indicating that per capita increase in economic growth may not cause any perpetual rise in energy consumption in Jordan.

CAUSAL RELATIONSHIP OF ENERGY CONSUMPTION AND ECONOMIC GROWTH – A CASE STUDY OF PAKISTAN

2021 ◽  
Vol 9 (1) ◽  
pp. 139-164
Author(s):  
Saddam Hussain ◽  
Chunjiao Yu
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Energy Consumption ◽  
Causal Relationship ◽  
Inflation Rate ◽  
Time Series Data ◽  
Consumer Price Index ◽  
Series Data ◽  
Relationship Of

This paper explores the causal relationship between energy consumption and economic growth in Pakistan, applying techniques of co-integration and Hsiao’s version of Granger causality, using time series data over the period 1965-2019. Time series data of macroeconomic determi-nants – i.e. energy growth, Foreign Direct Investment (FDI) growth and population growth shows a positive correlation with economic growth while there is no correlation founded be-tween economic growth and inflation rate or Consumer Price Index (CPI). The general conclu-sion of empirical results is that economic growth causes energy consumption.

An econometric study of carbon dioxide (CO2) emissions, energy consumption, and economic growth of Pakistan

2012 ◽  
Vol 6 (4) ◽  
pp. 518-533 ◽  
Author(s):  
Matloub Hussain ◽  
Muhammad Irfan Javaid ◽  
Paul R. Drake
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Energy Consumption ◽  
Environmental Pollution ◽  
Granger Causality ◽  
Time Series Data ◽  
Series Data ◽  
Future Research ◽  
Content Type ◽  
Per Capita

PurposeThe purpose of this paper is to examine the relationship among environmental pollution, economic growth and energy consumption per capita in the case of Pakistan. The per capital carbon dioxide (CO2) emission is used as the environmental indicator, the commercial energy use per capita as the energy consumption indicator, and the per capita gross domestic product (GDP) as the economic indicator.Design/methodology/approachThe investigation is made on the basis of the environmental Kuznets curve (EKC), using time series data from 1971 to 2006, by applying different econometric tools like ADF Unit Root Johansen Co‐integration VECM and Granger causality tests.FindingsThe Granger causality test shows that there is a long term relationship between these three indicators, with bidirectional causality between per capita CO2 emission and per capita energy consumption. A monotonically increasing curve between GDP and CO2 emission has been found for the sample period, rejecting the EKC relationship, implying that as per capita GDP increases a linear increase will be observed in per capita CO2 emission.Research limitations/implicationsFuture research should replace the economic growth variable, i.e. GDP by industrial growth variable because industrial sector is major contributor of pollution by emitting CO2.Practical implicationsThe empirical findings will help the policy makers of Pakistan in understanding the severity of the CO2 emissions issue and in developing new standards and monitoring networks for reducing CO2 emissions.Originality/valueEnergy consumption is the major cause of environmental pollution in Pakistan but no substantial work has been done in this regard with reference to Pakistan.

scholarly journals An empirical analysis of the energy consumption – real GDP nexus for Zimbabwe

2013 ◽  
Vol 10 (3) ◽  
pp. 426-433
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Time Series Data ◽  
Scale Up ◽  
Series Data ◽  
Causality Test ◽  
Long Run ◽  
Causality Relationship ◽  
Capital Development ◽  
Growth Hypothesis

This study looked into causality relationship between energy consumption and economic growth in Zimbabwe using time series data spanning from 1980 to 2011. Four views explaining the causality relationship between energy consumption and economic growth include the growth hypothesis, conservation hypothesis, feedback hypothesis and the neutrality hypothesis. Whilst the growth hypothesis argues that energy consumption promotes economic growth, conservation hypothesis says that it is in fact economic growth that drives energy consumption. The feedback hypothesis argues that both energy consumption and economic growth promote each other whilst according to the neutrality hypothesis, no causality relationship exist between the two variables either in the short or long run. Using the bi-variate causality test framework, this study failed to establish any direct causality relationship between energy consumption and economic growth. However, the results imply the existence of an indirect bi-directional causality relationship between the two variables. The study therefore recommends Zimbabwe authorities not only to scale up investment into energy generation capacity improvement infrastructure but also address indirect factors like employment, human capital development, financial market development, and government consumption, among others in order to boost sustainable economic growth.

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.

The Nexus between Government Expenditure and Economic Growth: Evidence of the Wagner’s Law in Kuwait

2019 ◽  
Vol 15 (1) ◽  
Author(s):  
Ali Ebaid ◽  
Zakaria Bahari
Keyword(s):  
Economic Growth ◽  
Government Spending ◽  
Time Series Data ◽  
Government Expenditure ◽  
Policy Instrument ◽  
Series Data ◽  
Causality Test ◽  
Wagner’S Law ◽  
Per Capita ◽  
Wagner's Law

Abstract This study is the first attempt to examine the validity of the Wagner’s law hypothesis by employing time-series data over the period from 1970 to 2015 in Kuwait. In this paper, the causal relationship between government expenditure and economic growth is tested by conducting the Granger non-causality test developed by (Toda, H. Y., and T. Yamamoto. 1995. “Statistical Inference in Vector Autoregressions with Possibly Integrated Processes.” Journal of Econometrics 66 (1): 225–250.) and (Dolado, J. J., and H. Lütkepohl. 1996. “Making Wald Tests Work for Cointegrated VAR Systems.” Econometric Reviews 15 (4): 369–386.). The empirical results support the unidirectional causality running from government spending to economic growth. This occurs only when real government expenditure per capita is a proxy for state activity and real gross domestic product (GDP) per capita is a measure of economic growth. This implies that Wagner’s law does not apply for Kuwait’s economy, and the Keynesian proposition of government spending as a policy instrument that encourages and leads economic growth is supported by the data used.

scholarly journals An Empirical Investigation of the Causal Relationship amongst Energy Consumption, Net Fixed Capital Stock and Economic Growth in India

2019 ◽  
Vol 6 (5) ◽  
pp. 5449-5454
Author(s):  
Mr. Abhijit Phukon ◽  
Ms. Mitali Konwar
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Causal Relationship ◽  
Time Series Data ◽  
Fixed Capital ◽  
Series Data ◽  
Net Energy ◽  
Gas Consumption ◽  
Natural Gas Consumption ◽  
Good Policy

Purpose- in this paper, an effort has been made to establish the causal relationship amongst energy consumption, net fixed capital stocks and economic growth measured in terms of Gross Domestic Product (GDP) in India. Further attempt has been made to fix the direction of causality by taking into account the disaggregated energy consumption such as petroleum, coal, electricity and gas consumption. Design/ methodology/ approach- the methodology is based on the Engle-Granger method of co-integration and Johanson-Juselius multivariate method and uses a time series data of disaggregated energy consumption, net fixed capital stocks and GDP over the period 1970-2002. Since no co-integration was found amongst the concerned variables, Standard Granger method is used to find out the causality between energy consumption and economic growth as well as energy consumption and net fixed capital stocks. Findings- the empirical results infer that there is bi-directional causality between energy consumption and economic growth and unidirectional causality running from energy consumption to net fixed capital stocks. The research concluded that since India is a net energy importer, especially petroleum, it has to pay a high oil import bill every year. Therefore, using oil more efficiently and/or substituting petroleum and gas by coal and electricity wherever possible could be a good policy measure. Perhaps, an energy conservation policy regarding petroleum and natural gas consumption would not lead to any adverse side effects on economic growth in India.

ENERGY CONSUMPTION AND ECONOMIC GROWTH: Evidence from Pakistan

2012 ◽  
Vol 02 (06) ◽  
pp. 09-14
Author(s):  
Najid Ahmad ◽  
Muhammad Farhat Hayat ◽  
Naqvi Hamad ◽  
Muhammad luqman
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Time Series Data ◽  
Ordinary Least Squares ◽  
Series Data ◽  
Causality Test ◽  
Alternative Source ◽  
Arch Effect ◽  
Biogas Plants ◽  
Energy Dependent

This paper investigates the relationship between energy consumption and economic growth of Pakistan. A time series data has been used for the period of 1973-2006. GDP is taken as dependent variable and energy consumption as independent variable. Augmented Dicky Fuller test has been used to check the stationary of the variables and both variables found stationary at level. The results of Granger causality test show uni-directional causality running from GDP to energy consumption. The results of ordinary least squares test show positive relation between GDP and energy consumption in Pakistan. One percent increase in energy consumption will raise GDP by 1.23%. Diagnostic tests confirm that residuals are normally distributed, coefficients are stable and there is no ARCH effect. Pakistan economy is energy dependent. Shortage of energy means lower the economic growth of Pakistan. We should utilize our own sources to meet the needs of energy like by constructing biogas plants in villages and solar energy is also alternative source. This can reduce the dependency on foreign sources.

Contribution of Education, Health and Economic Growth in Socioeconomic Development of Nepal: A Long Run Causality Using Time Series Data

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Prof. Dr. Hab A.Z. Nowak ◽  
Gangadhar Dahal
Keyword(s):  
Economic Growth ◽  
Socioeconomic Development ◽  
Time Series Data ◽  
Health Expenditures ◽  
Series Data ◽  
Causality Test ◽  
Macroeconomic Variables ◽  
Long Run ◽  
Short Run ◽  
Per Capita

This research examines the presence of the long run relationship and triangular causality among per capita education expenditures, GDP per capita and per capita health expenditures in Nepal. In this study ARDL bounds testing approach is used to examine the presence of long-run relationship and Granger Causality test for calculating short run, long run and both short run and long run triangular causality between the variables for the time series data of Nepal from 1994/95 to 2014/15. This research paper started with the aim of finding the triangular causality between education, health and economic growth of Nepal. The results of the research analysis also supported the view that there is co-integration and interrelation between these three macroeconomic variables. The results from OLS also show that there is high contribution of education and health in economic growth. There is also strong triangular causality between education, health and economic growth of the nation in the long run which is tested through ADRL mode, Granger Causality test and VECM approach. It also focused on the long run causality between these three macroeconomic variables. This research undoubtedly shows that there is crucial role of education in health, economic growth (say GDP) and socioeconomic development of Nepal and many more least developed and developing countries in the world. Keywords: GDP per capita, Per capita education expenditures, Per capita Health Expenditures JEL Classification: O10 economic development general, I21 analysis of education, I15 health and economic development

Impact of Health and Agriculture Financing on Economic Growth in Nigeria

2021 ◽  
Vol 7 (18) ◽  
pp. 37-58
Author(s):  
Rasaki Olufemi KAREEM ◽  
◽  
Olawale LATEEF ◽  
Muideen Adejare ISIAKA ◽  
Kamilu RAHEEM ◽  
...  
Keyword(s):  
Economic Growth ◽  
Federal Government ◽  
Causal Relationship ◽  
Agricultural Sector ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Government Expenditure ◽  
Health Sector ◽  
Series Data ◽  
The Impact

The study focused on the impact of health and agriculture financing on economic growth in Nigeria from 1981 to 2019. The study utilized the time series data which was extracted from Central Bank of Nigeria annual statistical bulletin. Unit Root test was performed with the use of Augmented Dickey-Fuller test in order to ascertain the stationarity of all the variables and they were all found to be stationary at order 1 in the two specified models (composite and disaggregated). Error Correction Model (ECM) was used to analyze the data in order to determine the speed of adjustment from the short run to the long run equilibrium state. Casualty test was used to confirm causal relationship among the variables of interests. The study revealed that Federal Government expenditure in Health sector has a significant effect on economic growth in Nigeria. Federal Government expenditure in Agricultural sector equally had a positive effect on economic growth but surprisingly not significant. Considering the disaggregated form, Federal Government capital expenditure in both Health and Agricultural sectors have positive and statistically significant effect on economic growth while Federal Government recurrent expenditure on health has a positive and statistically insignificant effect in economic. It was also revealed that there is causal relationship among the variables. Based on the findings, the study concluded that Federal Government Expenditure in Health Sectors and Agriculture Sectors have effect on economic growth in Nigeria.

scholarly journals PENGARUH KONSUMSI ENERGI DAN REZIM TERHADAP PERTUMBUHAN EKONOMI DI INDONESIA

2019 ◽  
Vol 1 (2) ◽  
pp. 401
Author(s):  
Zakiah Husna ◽  
Idris Idris
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Time Series Data ◽  
Secondary Data ◽  
Series Data ◽  
Renewable Energy Consumption ◽  
Energy Regime ◽  
Negative Effect ◽  
Positive Effect

This study aims to determine the effect of energy consumption and regime on economic growth in Indonesia. The data used is secondary data in the form of time series data from 1988-2017, with documentation and library study data collection techniques obtained from relevant institutions and agencies. the variables used are economic growth (GDP), non-renewable energy consumption, renewable energy consumption and regime, the research methods used are: (1) Multiple Regression Analysis (OLS), (2) Classical Assumption Test results of research stating that: ( 1) non-renewable energy consumption has a positive effect on economic growth in Indonesia. (2) consumption of renewable energy has a positive effect on economic growth in Indonesia. (3) the energy regime has a negative effect on economic growth in Indonesia. (4) non-renewable energy consumption, renewable energy consumption and energy regime have a significant effect on economic growth in Indonesia. so only the energy regime has a negative effect on economic growth in Indonesia.

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