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The Role of Energy Supply in Economic Growth: Evidence from the Oil Importing Countries

Author

Listed:
  • Ghazi A. Samawi

    (Department of Management Sciences, German Jordanian University, Jordan)

  • Metri F. Mdanat

    (Department of Management Sciences, German Jordanian University, Jordan)

  • Talah S. Arabiyat

    (Department of Management Sciences, German Jordanian University, Jordan.)

Abstract

The main purpose of this study is to explore and analyse relationships between energy supply and economic growth. Path analysis and structural equation modelling have been used to analyse the direct and indirect effects of energy supply on economic growth by identifying the form of the relationships between them and the role of mediating variables. Energy supply was found to be strongly correlated with economic growth and to have a number of other relationships and effects on the economy. It was also found that mediating variables had different relationships and effects on the economy based on the source of energy. This result confirms that changes in energy suppliers seem to reflect changes in the political economy of the country rather than shifts in energy use. The influence of the political economy and the preferential treatment of supplying energy to oil importing countries below market price were found to have mixed effects on economic growth for both trade and budget path models.

Suggested Citation

  • Ghazi A. Samawi & Metri F. Mdanat & Talah S. Arabiyat, 2017. "The Role of Energy Supply in Economic Growth: Evidence from the Oil Importing Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 7(6), pages 193-200.
    • Handle: RePEc:eco:journ2:2017-06-23
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    References listed on IDEAS

    as
    1. Belke, Ansgar & Dobnik, Frauke & Dreger, Christian, 2011. "Energy consumption and economic growth: New insights into the cointegration relationship," Energy Economics, Elsevier, vol. 33(5), pages 782-789, September.
    2. Asafu-Adjaye, John, 2000. "The relationship between energy consumption, energy prices and economic growth: time series evidence from Asian developing countries," Energy Economics, Elsevier, vol. 22(6), pages 615-625, December.
    3. repec:zbw:rwirep:0190 is not listed on IDEAS
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    Cited by:

    1. Karen Fernandes & Y. V. Reddy, 2020. "Energy Consumption and Economic Growth in Newly Industrialised Countries of Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 384-391.
    2. Valeriy Prasolov & Valery Bezpalov & Svetlana Doguchaeva & Rodion Rogulin, 2020. "Energy Price Formation and Energy Consumption by Households as a Factor of Ensuring Energy Safety," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 82-93.
    3. Ahmad Alshwawra & Ahmad Almuhtady, 2020. "Impact of Regional Conflicts on Energy Security in Jordan," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 45-50.
    4. Yasin Ahmed Sulub & Zarinah Hamid & Mior Nasir Mior Nazri, 2020. "Renewable Energy Supply and Economic Growth in Malaysia: An Application of Bounds Testing and Causality Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 255-264.

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    More about this item

    Keywords

    Energy supply; Economic growth; Structural equation; Path analysis. ?;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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