『(Abstract)
The article attempts to test the aluminum consumption-economic
growth nexus for 20 rich economies for the period 1970-2009. Various
panel data unit root and cointegration tests are applied. The
series are found to be integrated of order one and cointegrated,
especially after controlling for cross-sectional dependence. Moreover,
the Blundell-Bond system generalized methods-of-moments is employed
to conduct a panel causality test in a vector error-correction
mechanism setting. Unidirectional causality running from aluminum
consumption to real GDP is uncovered in the short-run, while real
GDP is found to Granger-cause aluminum consumption in the long-run.
Moreover, a 1% increase in real GDP generates an increase of 0.44%
in aluminum consumption in the long-run for the whole panel.
Key words: aluminum consumption; economic growth; panel causality;
panel DOLS.』
Introduction
Review of literature
The testing framework
Panel unit root and cointegration tests
Panel VECM-based causality test
Long-run elasticities
Conclusion and policy implications
Acknowledgments
References