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Energy Consumption and Economic Growth in Indonesia

Author

Listed:
  • Nguyen Duy Dat

    (Thuong Mai University, Ha Noi, Vietnam,)

  • Nguyen Hoang

    (Thuong Mai University, Ha Noi, Vietnam,)

  • Mai Thanh Huyen

    (Thuong Mai University, Ha Noi, Vietnam,)

  • Dinh Tran Ngoc Huy

    (Banking University, Ho Chi Minh City, Vietnam,)

  • Luong Minh Lan

    (Van Lang University, Ho Chi Minh City, Vietnam.)

Abstract

The aim of following study was to examine the relationship between energy consumption and economic growth in Indonesia. This study has used quantitative research design for assessing the energy consumption and its link with economic growth in Indonesia for the period of 2000-2019. The independent variable in this study was energy consumption whereas; dependent variable was economic growth in Indonesia .The data is analysed through E-views using Autoregressive Distributed Lag (ARDL) co-integration approach for long-run relationship, and long-run and short-run coefficients, Augmented Dickey Fuller (ADF) and Johansen co-integration. The findings have revealed that economic growth and energy consumption has association with each other. Within the given historic data, energy consumption has the ability to predict economic growth in Indonesia. The research can be improved through increasing sample size, number of variables and countries for comparison. This study also provides the guideline to the polcymakers that they should develop the policies related to the energy consumption that enhance the economic growth of the country.

Suggested Citation

  • Nguyen Duy Dat & Nguyen Hoang & Mai Thanh Huyen & Dinh Tran Ngoc Huy & Luong Minh Lan, 2020. "Energy Consumption and Economic Growth in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 601-607.
    • Handle: RePEc:eco:journ2:2020-05-71
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    References listed on IDEAS

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    More about this item

    Keywords

    Energy consumption; economic growth; GDP; CO2 emissions;
    All these keywords.

    JEL classification:

    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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