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Predictability within the energy consumption–economic growth nexus: Some evidence from income and regional groups

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  • Narayan, Seema

Abstract

In re-examining the nexus between energy consumption and economic growth through the predictability framework, we adopt a panel data predictive regression model to examine the possibility of growth, conservative, feedback, or neutrality hypotheses for 135 countries. A predictive regression model is fitted to panels of countries on the basis of location and level of economic development. Findings suggest strong support for the neutrality hypothesis. A developing economy panel (90 countries) favours the conservative hypothesis, although a panel of 32 lower middle-income countries suggests that energy consumption per capita predicts real GDP per capita. These forecasts could provide future policy directions.

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  • Narayan, Seema, 2016. "Predictability within the energy consumption–economic growth nexus: Some evidence from income and regional groups," Economic Modelling, Elsevier, vol. 54(C), pages 515-521.
    • Handle: RePEc:eee:ecmode:v:54:y:2016:i:c:p:515-521
    DOI: 10.1016/j.econmod.2015.12.037
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