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A Panel Dynamic Analysis on Energy Consumption, Energy Prices and Economic Growth in Next 11 Countries

Author

Listed:
  • Jannatul Ferdaus

    (Department of Economics, Comilla University, Cumilla-3506, Bangladesh)

  • Bismark Kusi Appiah

    (PhD. Candidate, School of Economics, Shandong University, Jinan-250100, P. R. China,)

  • Shapan Chandra Majumder

    (Department of Economics, Comilla University, Cumilla-3506, Bangladesh)

  • Anouba Acha Arnaud Martial

    (PhD Candidate in Business Administration, School of Business, Hohai University, P. R. China)

Abstract

This study empirically examines the impacts of energy consumption and energy prices on economic growth for three data sets of panel groups of Next 11 countries within a multivariate panel framework over the period 1990-2013. For the entire panel group of Next 11 countries, it is obtained from the results of panel Autoregressive Distributed Lag estimation approach that, energy consumption has a positive and energy prices have a negative impact on economic growth, both in the long-run and short-run; and a unidirectional causal linkage between economic growth and energy consumption is confirmed by the results of panel causality tests. For the 6 of Next 11 net oil-importing countries panel group, it is found from panel Dynamic Ordinary Least Squares method that, economic growth is negatively influenced by both energy consumption and energy prices. The results of panel Autoregressive Distributed Lag estimation approach for the 5 of Next 11 net oil-exporting countries panel group portrays that, in the long-run, energy consumption negatively affects economic growth and energy prices positively influence economic growth, while in the short-run, economic growth is negatively affected by both energy consumption and energy prices.

Suggested Citation

  • Jannatul Ferdaus & Bismark Kusi Appiah & Shapan Chandra Majumder & Anouba Acha Arnaud Martial, 2020. "A Panel Dynamic Analysis on Energy Consumption, Energy Prices and Economic Growth in Next 11 Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 87-99.
    • Handle: RePEc:eco:journ2:2020-06-12
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    Cited by:

    1. Md. Hasanur Rahman & Alfarunnahar Ruma & Mohammad Nasir Hossain & Rifat Nahrin & Shapan Chandra Majumder, 2021. "Examine the Empirical Relationship between Energy Consumption and Industrialization in Bangladesh: Granger Causality Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 121-129.
    2. Muntasir Murshed & Haider Mahmood & Tarek Tawfik Yousef Alkhateeb & Mohga Bassim, 2020. "The Impacts of Energy Consumption, Energy Prices and Energy Import-Dependency on Gross and Sectoral Value-Added in Sri Lanka," Energies, MDPI, vol. 13(24), pages 1-22, December.
    3. Chang, Chiu-Lan & Fang, Ming, 2022. "Renewable energy-led growth hypothesis: New insights from BRICS and N-11 economies," Renewable Energy, Elsevier, vol. 188(C), pages 788-800.

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    More about this item

    Keywords

    Energy Consumption; Energy Prices; Economic Growth; Next 11 Countries;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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