『Abstract
This paper uses the panel data of energy consumption (EC) and
economic growth (GDP) for 51 countries from 1971 to 2005. These
countries are divided into three groups: low income group, lower
middle income group and upper middle income group countries. Firstly,
a relationship between energy consumption and economic growth
is investigated by employing Pedroni (1999) panel cointegration
method. Secondly, panel causality test is applied to investigate
the way of causality between the energy consumption and economic
growth. Finally, we test whether there is a strong or weak relationship
between these variables by using Pedroni (2001) method. The empirical
results of this study are as follows: i) Energy consumption and
GDP are cointegrated for all three income group countries. ii)
The panel causality test results reveal that there is long-run
Granger causality running from GDP to EC for low income countries
and there is bidirectional causality between EC and GDP for middle
income countries. iii) The estimated cointegration factor, β,
is not close to 1. In other words, no strong relation is found
between energy consumption and economic growth for all income
groups considered in this study. The findings of this study have
important policy implications and it shows that this issue still
deserves further attention in future research.
Keywords: Energy consumption; Economic growth; Panel data』
1. Introduction
2. Data and methodology
3. Empirical results
3.1. Panel unit root analysis
3.2. Panel cointegration analysis
3.3. Panel causality analysis
3.4. Panel FMOLS and DOLS estimates
4. Conclusion and policy implications
Acknowledgement
References