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Is Trade Openness the Reason of High Energy Demand in China?

Author

Listed:
  • Atif Khan Jadoon

    (Department of Economics, University of the Punjab, Pakistan)

  • Hafiz Muhammad Qasim

    (Department of Economics, Lahore Leads University, Pakistan,)

  • Ambreen Sarwar

    (Department of Economics, University of the Punjab, Pakistan,)

  • Rehan Ahmed Khan

    (College of Statistical and Actuarial Sciences, University of the Punjab, Pakistan,)

  • Muhammad Ali

    (Institute of Business Administration, University of the Punjab, Pakistan.)

Abstract

The present study aims to examine the short-run and long-run impact of China s trade liberalization policies on its energy demand over the period from 1980 to 2018. The results of Autoregressive Distributed Lag approach of co-integration show that energy consumption significantly increases as a result of trade openness and increase in real Gross Domestic Product (GDP). The results of the granger causality test also confirm the unidirectional causality running from trade openness and real GDP to energy demand. The results of the study have an important implication because if China wants to continue its trade liberalization policies then it must increase its energy production.

Suggested Citation

  • Atif Khan Jadoon & Hafiz Muhammad Qasim & Ambreen Sarwar & Rehan Ahmed Khan & Muhammad Ali, 2021. "Is Trade Openness the Reason of High Energy Demand in China?," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 479-485.
    • Handle: RePEc:eco:journ2:2021-04-55
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    More about this item

    Keywords

    Energy Consumption; Gross Domestic Product; Trade Openness; China; Time Series;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F15 - International Economics - - Trade - - - Economic Integration
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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