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The ARDL Method in the Energy-Growth Nexus Field; Best Implementation Strategies

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  • Angeliki N. Menegaki

    (Department of Economics & Management of Tourist and Culture Units, Agricultural University of Athens, 33100 Amfissa, Greece)

Abstract

A vast number of the energy-growth nexus researchers, as well as other “X-variable-growth nexus” studies, such as for example the tourism-growth nexus, the environment-growth nexus or the food-growth nexus have used the autoregressive distributed lag model (ARDL) bounds test approach for cointegration testing. Their research papers rarely include all the ARDL procedure steps in a detailed way and thus they leave other researchers confused with the series of steps that must be followed and the best implementation paradigms so that they not allow any obscure aspects. This paper is a comprehensive review that suggests the steps that need to be taken before the ARDL procedure takes place as well as the steps that should be taken afterward with respect to causality investigation and robust analysis.

Suggested Citation

  • Angeliki N. Menegaki, 2019. "The ARDL Method in the Energy-Growth Nexus Field; Best Implementation Strategies," Economies, MDPI, vol. 7(4), pages 1-16, October.
    • Handle: RePEc:gam:jecomi:v:7:y:2019:i:4:p:105-:d:277926
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