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

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

Year 2014, Volume: 4 Issue: 4, 610 - 620, 01.12.2014

Bilal Mehmood Syed Hassan Raza Mahwish Rana Huma Sohaib Muhammad Azhar Khan

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

Energy consumption, National income, Price index, Pedroni Cointegration, Kao Cointegration, Westerlund Test, Structural breaks

Year 2014, Volume: 4 Issue: 4, 610 - 620, 01.12.2014

Bilal Mehmood Syed Hassan Raza Mahwish Rana Huma Sohaib Muhammad Azhar Khan

Abstract

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Details

Other ID	JA38UA38MV
Journal Section	Research Article
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
Published in Issue	Year 2014 Volume: 4 Issue: 4

Cite

APA	Mehmood, B., Raza, S. H., Rana, M., Sohaib, H., et al. (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.
AMA	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. December 2014;4(4):610-620.
Chicago	Mehmood, Bilal, Syed Hassan Raza, Mahwish Rana, Huma Sohaib, and 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”. International Journal of Energy Economics and Policy 4, no. 4 (December 2014): 610-20.
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	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, 2014.
ISNAD	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 4/4 (December 2014), 610-620.
JAMA	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, 2014, pp. 610-2.
Vancouver	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):610-2.