scholarly journals Leveraged Bootstrap Test of Volatility: A Novel Approach to the Energy Consumption and Economic Growth Puzzle

2017 ◽  
Vol 9 (9) ◽  
pp. 117 ◽  
Author(s):  
Kuo-Hao Lee ◽  
Jonathan Ohn ◽  
Evren Eryilmaz
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Stock Returns ◽  
Causal Relationship ◽  
Stock Prices ◽  
Granger Causality Test ◽  
Energy Industry ◽  
Causality Test ◽  
Bootstrap Test ◽  
Novel Approach

The main purpose of this research is to examine the causal relationship between the Energy industry and nine other industries by use of volatility instead of returns. Existing literatures find a causal relationship by use of stock returns, however, we find that using volatility reveals a causal relationship that might not otherwise be revealed through returns alone. Since the existing literature shows that volatility of stock prices is informative, we apply a Granger causality test by use of a leveraged bootstrap test developed by Hacker and Hatemi (2006) to investigate the causal behavior of the volatility. Our results show that volatility of the Energy industry causes volatility in two other industries- Industrials and Health Care. Also, the Energy industry market is affected by the Materials, Consumer Staples and Utilities industries. This finding is substantially different from the findings of previous research, and provides a novel approach to analyzing and solving the energy consumption and economic growth puzzle.

scholarly journals Financial Development and Economic Growth: Time Series Analysis of Economy of Pakistan

2018 ◽  
Vol 5 (2) ◽  
pp. 59
Author(s):  
Muhammad Shoukat Malik ◽  
Raisham Hayee ◽  
Raima Adeel
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Time Series Analysis ◽  
Causal Relationship ◽  
Financial Development ◽  
Granger Causality Test ◽  
Growth Time ◽  
Annual Data ◽  
Causality Test ◽  
Stationary Level

This study aims in understanding the causal relationship between financial development and economic growth. This research used annual data and applied dickey fuller test and granger causality test in order to understand stationary level and causation in variables. The results of this test give support to first hypothesis that financial development causes economic growth. While no evidence was found on the support of our second hypothesis i.e. economic growth is causing financial development.

scholarly journals ODA and Provincial Economic Growth in Vietnam

2019 ◽  
Vol 6 (1) ◽  
pp. 1
Author(s):  
Dang Ngoc Duc ◽  
Do Thi Ngoc Lan
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Empirical Evidence ◽  
Case Studies ◽  
Causal Relationship ◽  
Granger Causality ◽  
Focal Point ◽  
Causal Effect ◽  
Granger Causality Test ◽  
Causality Test

The focal point of this paper is focused on assessing the causal relationship between ODA and economic growth in the localities of Vietnam. This research uses panel data of ODA and GDP from 63 provinces of Vietnam by using Granger Causality test. The results showed that ODA has a causal effect on economic growth (GDP) and vice versa, economic growth decides to attract ODA in provinces in Vietnam. This result complements studies on the causal relationship between ODA and economic growth using new empirical evidence through case studies in the provinces of Vietnam.

On the Relationship between Economic Growth and Energy Consumption in Beijing

2014 ◽  
Vol 962-965 ◽  
pp. 2165-2169
Author(s):  
Feng Yun Wang ◽  
Bing Hua Chen ◽  
Jin Ru Fan
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Energy Consumption ◽  
Causal Relationship ◽  
Energy Industry ◽  
Counter Measures ◽  
Tertiary Industry ◽  
Secondary Industry ◽  
The Relationship

This paper studies the causal relationship between energy consumption and economic growth in Beijing by using econometric method from 1980 to 2012, and then establishes the model between the energy consumption of three industries and economic growth to study the influence of the secondary industry and tertiary industry energy consumption on economic growth in Beijing. Finally, we put forward counter measures and suggestions on sustainable development of Beijing's economy and energy industry.

The relationship between energy consumption and gross domestic product in Hong Kong (1992–2015): Evidence from sectoral analysis and implications on future energy policy

2019 ◽  
Vol 31 (2) ◽  
pp. 215-236
Author(s):  
Ruixiaoxiao Zhang ◽  
Geoffrey QP Shen ◽  
Meng Ni ◽  
Johnny Wong
Keyword(s):  
Time Series ◽  
Energy Consumption ◽  
Gross Domestic Product ◽  
Causal Relationship ◽  
Granger Causality ◽  
Value Added ◽  
Granger Causality Test ◽  
Domestic Product ◽  
Causality Test ◽  
Per Capita

The causal relationship between energy consumption and gross domestic product in Hong Kong from 1992 to 2015 is investigated in this study. Different from the previous studies focusing on the causal relationship between total energy consumption and total gross domestic product per capita, this study further investigates the causal relationship from sectoral perspective, including residential, commercial, industrial and transportation sectors. For each sector, the time series data of sectoral energy consumption and sectoral per capita value added are collected. To conduct the Granger causality test, the unit root test is first applied to analyse the stationarity of time series. The cointegration test is then employed to examine whether causal relationship exists in long-term. Finally, based on the aforementioned tests, both vector error correction model and vector autoregression model can be selected to determine the Granger causality between time series. It is interesting to find that the sectoral energy consumption and corresponding sectoral per capita value-added exhibit quite different causal relationships. For both residential sector and commercial sectors, a unidirectional causal relationship is found running from the sectoral per capita value added to sectoral energy consumption. Oppositely, for industrial sector and transportation sector, a unidirectional causal relationship is found running from sectoral energy consumption to sectoral per capita value added. Regarding the Granger causality test results, the indicative suggestions on energy conservation policies, energy efficiency policies and greenhouse gas emission reduction policies are discussed based on the background of Hong Kong’s economic structure and fuel types.

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.

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

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

Sign in / Sign up

Export Citation Format

Share Document