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Energy Consumption, Trade and GDP: A Case Study of South Asian Countries

Author

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  • Shakeel, Muhammad
  • Iqbal, Mazhar
  • Majeed, Muhammad Tariq

Abstract

Using panel co-integration approach over the period 1980-2009 for South Asian economies, this study investigates the dynamic linkages between energy consumption, trade and GDP. The results show that, in the short run, feedback relationship holds between energy consumption and GDP and between energy consumption and exports. In the long run, the feedback relation holds between energy and GDP while unidirectional causality holds from export to energy. Thus, feedback hypothesis between energy and GDP holds in the short as well as in the long run. The feedback relationship between trade and energy consumption suggests that any shortage of energy supply will lessen the trade and this reductions in trade will lessen the benefits of trade in the region since results have also shown that reduction in export can impede GDP growth.

Suggested Citation

  • Shakeel, Muhammad & Iqbal, Mazhar & Majeed, Muhammad Tariq, 2013. "Energy Consumption, Trade and GDP: A Case Study of South Asian Countries," MPRA Paper 57677, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:57677
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    Citations

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    Cited by:

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    6. Muhammad Shakeel & Aziz Ahmed, 2021. "Economic growth, exports, and role of energy conservation: Evidence from panel co-integration-based causality models in South Asia," Energy & Environment, , vol. 32(1), pages 3-24, February.
    7. Muhammad Zeeshan & Jiabin Han & Alam Rehman & Hazrat Bilal & Naveed Farooq & Muhammad Waseem & Arif Hussain & Muhammad Khan & Ilyas Ahmad, 2021. "Nexus between Foreign Direct Investment, Energy Consumption, Natural Resource, and Economic Growth in Latin American Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 407-416.
    8. repec:ipg:wpaper:2014-592 is not listed on IDEAS
    9. Deeti Saha, 2020. "Comparative Analysis of Economic Performance of SAARC Countries Based on the Estimated Cobb-Douglas Production Function," International Journal of Science and Business, IJSAB International, vol. 4(10), pages 39-63.
    10. A. H. M. Mehbub Anwar & Mohammad Altelmesani & Abdulrahman Alwosheel, 2024. "Unveiling the causal nexus between Saudi’s seaborne trade and economy: evidence from an ARDL model," Journal of Shipping and Trade, Springer, vol. 9(1), pages 1-21, December.
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    More about this item

    Keywords

    Energy Consumption; Growth; Trade; Panel Co-Integration;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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