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Energy Consumption and Economic Growth: The Evidence from India

Author

Listed:
  • Zafar Ahmad Sultan

    (Department of Economics, L.S. College, Muzaffarpur, B.R.A. Bihar University, Muzaffarpur; Bihar, India)

  • Tarek Tawfik Yousef Alkhateeb

    (Department of Marketing, College of Business Administration, Prince Sattam Bin Abdulaziz University, Alkharj, Saudi Arabia,)

Abstract

The oil price shock of the 1970s and its disruptive impact on the economic activities all over the world dragged the attention of researchers to study the interaction between energy and real output. However, no conclusive evidence could be submitted about the direction of causality between the two. The present study has been an attempt to understand such relationship in the case of India. The paper has used the data from 1971 to 2014 and has found long run stable relationship between energy use and real output. The study also reveals that in the short run, there is unidirectional relationship between the two and energy Granger causes economic activities in India. In the long run, we find bidirectional relationship between energy and economic prosperity of India.

Suggested Citation

  • Zafar Ahmad Sultan & Tarek Tawfik Yousef Alkhateeb, 2019. "Energy Consumption and Economic Growth: The Evidence from India," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 142-147.
    • Handle: RePEc:eco:journ2:2019-05-17
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    More about this item

    Keywords

    Oil Consumption; Economic Growth; India.;
    All these keywords.

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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