An investigation of cointegration between energy consumption and economic growth: Dynamic evidence from East Asian countries

Aslan A., Kum H.

GLOBAL ECONOMIC REVIEW, vol.39, no.4, pp.431-439, 2010 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 39 Issue: 4
  • Publication Date: 2010
  • Doi Number: 10.1080/1226508x.2010.533852
  • Journal Name: GLOBAL ECONOMIC REVIEW
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.431-439
  • Erciyes University Affiliated: No

Abstract

This paper aims to investigate the relationship between energy consumption and economic growth for 11 East Asian countries over the period 1971-2005 by taking into account their strong relationships. Based on fully modified ordinary least squares (FMOLS) and dynamic OLS (DOLS) approaches, while there exists a strong relation running from economic growth to energy consumption, it is observed that the strong relationship which runs from energy consumption to economic growth is overwhelmingly rejected for all cases except Indonesia and the Philippines. Moreover the inverse relation between two variables is observed for these two countries.