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Economic Growth, Financial Development, Energy Consumption and Life Expectancy: Fresh Evidence from ASEAN countries

Author

Listed:
  • Ernie Hendrawaty

    (Faculty of Economics and Business, Universitas Lampung, Indonesia.)

  • Mohd Shahidan Shaari

    (Faculty of Applied and Human Sciences, Universiti Malaysia Perlis, Malaysia.)

  • Fajrin Satria Dwi Kesumah

    (Faculty of Economics and Business, Universitas Lampung, Indonesia.)

  • Abdul Rahim Ridzuan

    (Faculty of Business and Management, Universiti Teknologi MARA, Malaysia.)

Abstract

The study examines the relationship between economic growth and life expectancy by considering the potential role of financial development and energy consumption in ASEAN Countries. Unit root testing was applied to check the level stationarity data before checking for cointegration between variables using the Error Correction Term (ECT) approach, and ARDL bounds testing was applied for cointegration with structural damage that occurred at a specific time using the Pooled Mean Group (PMG) and Pooled Mean Group (MG). The empirical results showed the existence of cointegration among variables. PMG was selected based on Hausmann Test that indicated energy consumption could significantly and positively affect life expectancy. Therefore, ASEAN countries would be extensively dependent on non-renewable energy to generate their economic activities in the long run. In contrast, in the short run, higher economic growth can reduce life expectancy in most developing countries, as energy consumption is examined to affect life.

Suggested Citation

  • Ernie Hendrawaty & Mohd Shahidan Shaari & Fajrin Satria Dwi Kesumah & Abdul Rahim Ridzuan, 2022. "Economic Growth, Financial Development, Energy Consumption and Life Expectancy: Fresh Evidence from ASEAN countries," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 444-448, March.
    • Handle: RePEc:eco:journ2:2022-02-49
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    References listed on IDEAS

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    2. Shahbaz, Muhammad & Siddiqui, Aaliyah & Ahmad, Shabbir & Jiao, Zhilun, 2023. "Financial development as a new determinant of energy diversification: The role of natural capital and structural changes in Australia," Energy Economics, Elsevier, vol. 126(C).
    3. Marselina & Tri Joko Prasetyo, 2023. "Does the Environmental Kuznets Curve Phenomenon Happening in High, Medium, and Low Income Countries?," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 544-551, January.

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    More about this item

    Keywords

    Economic growth; financial development; energy consumption; life expectancy; ASEAN;
    All these keywords.

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • F37 - International Economics - - International Finance - - - International Finance Forecasting and Simulation: Models and Applications
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications

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