Energy Consumption–Trade Openness – Economic Growth Nexus in G-8 Countries

Year 2017, Volume: 1 Issue: 1, 71 - 97, 30.06.2017

Alper Aslan Oğuz Öcal Muhammad Shahbaz

Abstract

This study aims to examine the relationship between
energy consumption-economic growth and energy consumption-international trade
(exports and imports) on aggregate level inG-8countries. We use the FMOLS and
DOLS and the empirical results show that 1 % increase in economic growth is
negatively linked with energy consumption by 0.46-1.22. A 1 % increase in
exports and imports increase energy consumption by 0.24-0.32% and 0.13-0.344 %
respectively. The unidirectional causality is found running from economic
growth, exports and imports to energy consumption.

Keywords

International trade, Energy consumption, Economic growth

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