Energy and economic growth in G20 countries: Panel cointegration analysis

Authors

  • Aynur Pala Okan University

DOI:

https://doi.org/10.17811/ebl.9.2.2020.56-72

Abstract

Rising economic performance has enlarged energy demand, carbon emissions and global warming. Policymakers need to avoid global warming. Therefore, energy-growth nexus is important. This paper empirically investigates the relationship between energy consumption and economic growth for a panel of G20 countries over the period 1990-2016. For this purpose, the paper considers the panel cointegration and panel vector error correction model. Panel cointegration test set out a long-run equilibrium relationship. Long-run relationship is estimated using a Fully Modified OLS (FMOLS) and Dynamic OLS (DOLS). The results show that causality run from energy consumption to GDP. It is indicates that “growth hypothesis” is valid for G20 countries.

References

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Published

11-03-2020

How to Cite

Pala, A. (2020). Energy and economic growth in G20 countries: Panel cointegration analysis. Economics and Business Letters, 9(2), 56–72. https://doi.org/10.17811/ebl.9.2.2020.56-72

Issue

Vol. 9 No. 2 (2020): June

Section

Articles

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