Energy Consumption and Economic Growth: A Case Study of Three SAARC Countries

European Journal of Social Sciences 09/2010; 16(2):206-213. DOI: 10.2139/ssrn.2124639


Energy is a crucial component to economic growth and plays a vital role in economic
development. This study inquires the causal relationships between energy consumption
(EC) and the economic growth (EG) within a multivariate framework that includes capital
stock and labor input for the panel of three SAARC countries by using modern panel unit
root technique, residual based panel cointegration and panel based error correction models
.The empirical results fully support a cointegration relationship between EC and EG in the
long run. But from the causal point of view there is long run unidirectional causality
running from EC to EG and no causality was found in the short run.

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    • "Naime, stavljanje energije u žarište ekonomske aktivnosti identiÞ cira upravo energiju, tonije korištenje energije kao važan izvor ekonomskog rasta i neizostavnu pokretaku snagu svih ekonomskih aktivnosti (Stern i Cleveland, 2004.). Odnosno, ekonomiju valja promatrati kao energetski sustav koji se sastoji od energetskih tokova i konverzija koji kulminiraju upravo u proizvodnji roba i usluga, a energiju kao kljuni izvor ekonomskog rasta, industrijalizacije i urbanizacije (Imran i Siddiqui, 2010., str. 206). "

    Full-text · Article · Dec 2015 · Ekonomski pregled
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    • "The results suggest causality runs from energy consumption to GDP in Turkey, France, Germany and Japan, and from GDP to energy consumption in Italy and Korea. Imran and Siddiqui (2010) measured the relationship between energy consumption and economic growth in three SAARC countries with multi-frame work panel data. They incorporated real GDP, energy consumption, labor force and capital stock by using modern panel unit root technique, residual based panel cointegration and panel based error correction models. "
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