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Dynamics of energy use, technological innovation, economic growth, and trade openness in Bangladesh

Author

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  • Md. Shafiqul Islam

    (East West University)

Abstract

This empirical study uses the Marshallian demand function as the underlying framework to investigate the relationship between technological innovations and energy consumption in Bangladesh. The underlying theoretical framework argues that technological innovation, which is regarded as an exogenous variable, will increase energy efficiency and lead to reduced energy consumption up to a certain economic output. ARDL (autoregressive distributed lag) bounds testing approach is used with a sample period from 1980 to 2016 (37 years). This study empirically establishes the validity of the theoretical predictions both in the short and long run. Furthermore, the study identifies the Environmental Kuznets Curve (EKC) hypothesis and shows the dynamics of GDP per capita and trade openness on energy consumption in Bangladesh.

Suggested Citation

  • Md. Shafiqul Islam, 2021. "Dynamics of energy use, technological innovation, economic growth, and trade openness in Bangladesh," Economics Bulletin, AccessEcon, vol. 41(3), pages 997-1008.
    • Handle: RePEc:ebl:ecbull:eb-20-00173
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    References listed on IDEAS

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    2. Dokas, Ioannis & Panagiotidis, Minas & Papadamou, Stephanos & Spyromitros, Eleftherios, 2023. "Does innovation affect the impact of corruption on economic growth? International evidence," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 1030-1054.

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    More about this item

    Keywords

    Marshallian demand function; technological innovation; energy use; EKC hypothesis; ARDL bounds testing; Bangladesh;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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