IDEAS home Printed from https://ideas.repec.org/a/ijr/beejor/v2y2014i3p72-84.html
   My bibliography  Save this article

Energy Consumption, Economic Growth and Financial Development: A Comparative Perspective on India and China

Author

Listed:
  • Hrushikesh Mallick

    (Centre for Development Studies (CDS), Kerala, India)

  • Mantu Kumar Mahalik

    (Amritapuri Campus, Amrita Vishwa Vidyapeetham University, India)

Abstract

The study empirically explores the relationships among energy use, economic growth and financial development for India and China on annual data for 1971 -2011. Using Auto Regressive Distributed Lag (ARDL) approach to cointegration model, it suggests that energy consumption is positively influenced by proportion of urban population, while it is negatively influenced by financial development, economic growth and proportion of industrial output in both the economies. The results also further suggest that urbanization adversely influences economic growth, whereas energy use positively influences growth for India. In contrast, while financial development, energy use and industrial output adversely influence the growth, the urbanization favorably influences the same for China. The finding for China is quite contrary to the common belief that the performance of industrial sector is the key success for achieving higher growth.

Suggested Citation

  • Hrushikesh Mallick & Mantu Kumar Mahalik, 2014. "Energy Consumption, Economic Growth and Financial Development: A Comparative Perspective on India and China," Bulletin of Energy Economics (BEE), The Economics and Social Development Organization (TESDO), vol. 2(3), pages 72-84, September.
    • Handle: RePEc:ijr:beejor:v:2:y:2014:i:3:p:72-84
    as

    Download full text from publisher

    File URL: http://tesdo.org/shared/upload/pdf/papers/BEE.2_3_72-84.pdf
    Download Restriction: no
    File URL: http://tesdo.org/journal_detail.php?paper_id=31&expand_year=2014
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Energy use; Urbanization; Financial development; Economic growth;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ijr:beejor:v:2:y:2014:i:3:p:72-84. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Muhammad Shahbaz (PhD Applied Economics) (email available below). General contact details of provider: https://edirc.repec.org/data/tesdopk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.