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Does Energy Consumption and Trade Openness Contribute to Economic Growth in the East Asian Growth Area?

Author

Listed:
  • Shairil Izwan Taasim

    (Faculty of Humanities, Management and Science, Universiti Putra Malaysia, Malaysia,)

  • Saizal Pinjaman

    (Faculty of Business, Economics and Accountancy, Universiti Malaysia Sabah, Malaysia)

  • Aliashim Albani

    (Faculty of Ocean Engineering Technology and Informatics, Universiti Malaysia Terengganu, Malaysia)

Abstract

This paper attempts to investigate the energy consumption and trade openness by taking into consideration the economic growth among associations within countries of Asia. The database was constructed and restricted to a sub-region area in southeast Asia well knows as Brunei, Indonesia, Malaysia, and the Philippines or BIMP-EAGA. The initiative, established in 1994 aims to increase the economic development of its members. We employed panel data analysis to examine the said linkage using panel co-integration on data taken for the period between 1970 to 2016. The approaches for panel data were the dynamic ordinary least squares (DOLS) and fully modified ordinary least squares (FMOLS). From our analysis, the findings indicated a significance and positive relationship between energy consumption, trade openness and economic growth. Additionally, we noted that both indicators are important among association to foster economic wellbeing. Furthermore, the benefit of this initiative of collaboration was highly successful.

Suggested Citation

  • Shairil Izwan Taasim & Saizal Pinjaman & Aliashim Albani, 2021. "Does Energy Consumption and Trade Openness Contribute to Economic Growth in the East Asian Growth Area?," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 23-29.
    • Handle: RePEc:eco:journ2:2021-02-3
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    References listed on IDEAS

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    More about this item

    Keywords

    s BIMP-EAGA; trade openness; economic growth; energy consumption;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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