A study on the causal relationship between energy consumption, energy price and economic growth in developing countries
Class
Article
Graduation Year
2018
College
College of Agriculture and Applied Sciences
Department
Applied Economics Department
Faculty Mentor
Dr. Ryan Bosworth
Presentation Type
Oral Presentation
Abstract
This paper examines the causal relationship between energy consumption, energy price and economic growth in four developing countries. VECM techniques using Engle-Granger methodology is utilized. WDI data covering Brazil, India, Mexico and Nigeria from 1971- 2012 was used for analysis. Empirical results suggested that unidirectional Granger causality runs from energy to income (growth) for India and Mexico, while bidirectional Granger causality runs from energy to income for Brazil. In long-run, there is unidirectional prices to income causality for all four countries. In general, this study suggests that energy and income are not neutral with respect to each other in long-run.
Location
Room 421
Start Date
4-13-2017 10:30 AM
End Date
4-13-2017 11:45 AM
A study on the causal relationship between energy consumption, energy price and economic growth in developing countries
Room 421
This paper examines the causal relationship between energy consumption, energy price and economic growth in four developing countries. VECM techniques using Engle-Granger methodology is utilized. WDI data covering Brazil, India, Mexico and Nigeria from 1971- 2012 was used for analysis. Empirical results suggested that unidirectional Granger causality runs from energy to income (growth) for India and Mexico, while bidirectional Granger causality runs from energy to income for Brazil. In long-run, there is unidirectional prices to income causality for all four countries. In general, this study suggests that energy and income are not neutral with respect to each other in long-run.