Causality Relationship Between Energy Consumption and Economic Growth by Using Vector Error Correction Model Based on Lateral Panel in ASEAN Member Countries

Document Type : Research article

Authors

Mohammad Taher Ahmadi Shadmehri

Azam Ghezelbash

Mohammad Daneshnia

https://doi.org/10.22067/erd.v20i6.43102

Abstract

Abstract
High economic growth always has been of interest to policy makers and administrators that these strategies have been proposed to achieve this. Energy is a production factor and its impact on economic growth can be observed , therefore in this study was investigate the causality between energy consumption and economic growth in the ASEAN member countries, the period 1978 of 2008, for the purpose of the exam panel unit root, panel cointegration and panel vector error correction model is used.
The results of this study indicate that in this group of countries there is not co-integration relationship between energy consumption, economic growth and price growth. But there is the co-integration relationship between energy consumption and economic growth. However, long-term bilateral causality between energy consumption and economic growth in the short term, there is also a one-way causality from energy consumption to economic growth.

Keywords: economic growth, energy, causality, ASEAN, vector error correction model
JEL: G54, E23 ,F12

Keywords

Economic Growth

energy

causality

ASEAN

vector error correction model

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