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The Relationship between Economic Growth, Energy Consumption and Trade

Author

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  • Eyup Dogan

    (Department of Economics, Abdullah Gul University, Turkey.)

Abstract

The main objective of this study is to investigate the short-run and long-run estimates and causal relationship between energy consumption, trade and economic growth for Belgium in three different multivariate models in which economic growth, energy consumption and trade are dependent variables, respectively. This study confirms the existence of long-run relationship between the analyzed variables in the three models. In addition, the short-run and long-run elasticities are statistically significant in all the proposed models. Furthermore, the Granger causality test shows the evidence of feedback hypothesis between economic growth and energy consumption, between economic growth and trade, and between energy consumption and trade both in the short-run and long-run. Thus, Belgium should promote energy consumption and trade through appropriate policies to obtain sustainable long-run economic growth.

Suggested Citation

  • Eyup Dogan, 2016. "The Relationship between Economic Growth, Energy Consumption and Trade," Bulletin of Energy Economics (BEE), The Economics and Social Development Organization (TESDO), vol. 4(1), pages 70-80, March.
    • Handle: RePEc:ijr:beejor:v:4:y:2016:i:1:p:70-80
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    More about this item

    Keywords

    Economic Growth; Energy Consumption; Trade; Granger Causality; Belgium;
    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
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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