Triangular Relationship between Energy Consumption, Price Index and National Income in Asian Countries: A Pooled Mean Group Approach in Presence of Structural Breaks

Volume: 4 Number: 4 December 1, 2014
  • Bilal Mehmood
  • Syed Hassan Raza
  • Mahwish Rana
  • Huma Sohaib
  • Muhammad Azhar Khan
EN

Triangular Relationship between Energy Consumption, Price Index and National Income in Asian Countries: A Pooled Mean Group Approach in Presence of Structural Breaks

Abstract

Energy consumption is a key factor in economic activity. To ascertain its role in economic growth, this study empirically investigates its role for Asian countries. Price index is also included in analysis as factor of economic growth. We examine and quantify this long run relationship for a sample of selected Asian countries with data on relevant variables for a large time dimension (1970 to 2012). Econometric precision is brought by using pooled mean group (PMG) besides other Pedroni, Kao and Westerlund panel cointegration tests. PMG being heterogeneous panels estimation technique allows the slope and short run parameters to vary across the countries. Structural breaks are also incorporated to observe the impact of shocks that leave permanent effect on national income. Results show the presence of long run relationship between energy consumption and national income. The positive contribution of energy consumption is quantified using Fully Modified OLS and dynamic OLS as well. Policy recommendations are made on the basis of empirical analysis.

Keywords

Details

Primary Language

English

Subjects

-

Journal Section

-

Authors

Bilal Mehmood This is me

Syed Hassan Raza This is me

Mahwish Rana This is me

Huma Sohaib This is me

Muhammad Azhar Khan This is me

Publication Date

December 1, 2014

Submission Date

December 1, 2014

Acceptance Date

-

Published in Issue

Year 2014 Volume: 4 Number: 4

APA
Mehmood, B., Raza, S. H., Rana, M., Sohaib, H., & Khan, M. A. (2014). Triangular Relationship between Energy Consumption, Price Index and National Income in Asian Countries: A Pooled Mean Group Approach in Presence of Structural Breaks. International Journal of Energy Economics and Policy, 4(4), 610-620. https://izlik.org/JA23AW26PW
AMA
1.Mehmood B, Raza SH, Rana M, Sohaib H, Khan MA. Triangular Relationship between Energy Consumption, Price Index and National Income in Asian Countries: A Pooled Mean Group Approach in Presence of Structural Breaks. IJEEP. 2014;4(4):610-620. https://izlik.org/JA23AW26PW
Chicago
Mehmood, Bilal, Syed Hassan Raza, Mahwish Rana, Huma Sohaib, and Muhammad Azhar Khan. 2014. “Triangular Relationship Between Energy Consumption, Price Index and National Income in Asian Countries: A Pooled Mean Group Approach in Presence of Structural Breaks”. International Journal of Energy Economics and Policy 4 (4): 610-20. https://izlik.org/JA23AW26PW.
EndNote
Mehmood B, Raza SH, Rana M, Sohaib H, Khan MA (December 1, 2014) Triangular Relationship between Energy Consumption, Price Index and National Income in Asian Countries: A Pooled Mean Group Approach in Presence of Structural Breaks. International Journal of Energy Economics and Policy 4 4 610–620.
IEEE
[1]B. Mehmood, S. H. Raza, M. Rana, H. Sohaib, and M. A. Khan, “Triangular Relationship between Energy Consumption, Price Index and National Income in Asian Countries: A Pooled Mean Group Approach in Presence of Structural Breaks”, IJEEP, vol. 4, no. 4, pp. 610–620, Dec. 2014, [Online]. Available: https://izlik.org/JA23AW26PW
ISNAD
Mehmood, Bilal - Raza, Syed Hassan - Rana, Mahwish - Sohaib, Huma - Khan, Muhammad Azhar. “Triangular Relationship Between Energy Consumption, Price Index and National Income in Asian Countries: A Pooled Mean Group Approach in Presence of Structural Breaks”. International Journal of Energy Economics and Policy 4/4 (December 1, 2014): 610-620. https://izlik.org/JA23AW26PW.
JAMA
1.Mehmood B, Raza SH, Rana M, Sohaib H, Khan MA. Triangular Relationship between Energy Consumption, Price Index and National Income in Asian Countries: A Pooled Mean Group Approach in Presence of Structural Breaks. IJEEP. 2014;4:610–620.
MLA
Mehmood, Bilal, et al. “Triangular Relationship Between Energy Consumption, Price Index and National Income in Asian Countries: A Pooled Mean Group Approach in Presence of Structural Breaks”. International Journal of Energy Economics and Policy, vol. 4, no. 4, Dec. 2014, pp. 610-2, https://izlik.org/JA23AW26PW.
Vancouver
1.Bilal Mehmood, Syed Hassan Raza, Mahwish Rana, Huma Sohaib, Muhammad Azhar Khan. Triangular Relationship between Energy Consumption, Price Index and National Income in Asian Countries: A Pooled Mean Group Approach in Presence of Structural Breaks. IJEEP [Internet]. 2014 Dec. 1;4(4):610-2. Available from: https://izlik.org/JA23AW26PW