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

Yıl 2017, Cilt: 1 Sayı: 1, 71 - 97, 30.06.2017

Alper Aslan Oğuz Öcal Muhammad Shahbaz

Öz

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.

Anahtar Kelimeler

International trade, Energy consumption, Economic growth

Kaynakça

• Aïssa, M. S. B., Jelbi, M. B. And Youssef, S. B. (2014). Output, renewable energy consumption and trade in Africa. Energy Policy, 66, 11–18.
• Akkemik K. A., Göksal K., 2012. Energy consumption-GDP nexus: Heterogeneous panel causality analysis. Energy Economics 34, 865–873.
• Apergis, N., Payne, J.E., 2010a. Coal consumption and economic growth: Evidence from a panel of OECD countries, Energy Policy 38, 1353–1359.
• Apergis, N., Payne, J.E., 2010b. Natural gas consumption and economic growth: A panel investigation of 67 countries. Applied Energy 87, 2759–2763.
• Awokuse, T. O., 2005a. Exports, economicgrowthandcausality in Korea. AppliedEconomicsLetters12(11), 693-696.
• Awokuse, T. O., 2005b. Export led growth and the Japanese economy: Evidence from VAR and acyclic graph. Applied Economic Letters 12, 849-858.
• Baltagi, B.H., Bresson, G., Pirotte, A., 2007. Panel Unit Root Tests and Spatial Dependence. Journal of Applied Econometrics 22, 339–360.
• Bozoklu, S. and Yilanci, V. (2013). Energy consumption and economic growth for selected OECD countries: Further evidence from the Granger causality test in the frequency domain. Energy Policy, 63, 877–881.
• Chontanawat, J., Hunt, L.C., Pierse, R., 2008. Does energy consumption cause economic growth? Evidence from a systematic study of over 100 countries. Journal of Policy Modeling 30, 209–220.
• Coers, R., Sanders, M., 2013.The energy–GDP nexus; addressing an old question with new methods. Energy Economics 36, 708–715.
• Dedeoglu, D.,Kaya,H., 2013. Energy use, exports, imports and GDP: New evidence from the OECD countries. Energy Policy 57, 469-476.
• Dumitrescu, E.I., Hurlin, C., 2012. Testing for Granger non-causality in heterogeneous panels. Economic Modelling 29(4), 1450-1460.
• Ekanayake, E.M., 1999. Exports and Economic Growth in Asian Developing Countries: Cointegration and Error-Correction Models. Journal of Economic Development24(2), 1999.
• Erkan C., Mucuk M., Uysal D., 2010.The Impact of Energy Consumption on Exports: The Turkish Case, Asian Journal of Business Management 2(1), 17-23.
• Giles, J. A. and Williams, C. L., 2000a. Export-led growth: a survey of empirical literature and some noncausality results. Part 1, Journal of International Trade and Economic Development 9, 265- 341.
• Giles, J.A., Williams, C.L., 2000b. Export-led growth: a survey of the empirical literature and some non-causality results: part 2. J. Int. Trade Econ. Dev. 9, 445–470.
• Halicioglu, F., 2011.A dynamic study of income, energy and exports in Turkey.Energy 36, 3348-3354.
• Hatemi, J. A., 2002. Export performance and economic growth nexus in Japan: a bootstrap approach, Japan and World Economy 14, 25-33.
• Hossain, M. S., 2012. Multivariate Granger Causality between Economic Growth, Electricity Consumption, Exports and Remittance for the Panel of Three SAARC Countries. Global Journal of Management and Business Research 12, 40-54.
• Im, K. S., Pesaran, M. H., Shin, Y., 2003. Testing for unit roots in heterogeneous panels. Journal of Econometrics 115(1), 53-74.
• Jalil, A. (2014). Energy–growth conundrum in energy exporting and importing countries: Evidence from heterogeneous panel methods robust to cross-sectional dependence. Energy Economics, 44, 314–324.
• Jinke, L., Hualing, S., Dianming, G., 2008. Causality relationship between coal consumption and GDP: difference of major OECD and non-OECD countries. Applied Energy, 85, 421-429.
• Johansen, S., 1988.Statistical analysis of cointegration vectors. Journal of Economic Dynamics and Control, 12(2-3), 231-254.
• Johansen, S., 1991.Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models.Econometrica 59(6), 1551-1580.
• Kao, C., 1999. Spurious regression and residual-based tests for cointegration in panel data. Journal of Econometrics 90(1), 1-44.
• Katircioglu, S. T. (2013). Interactions between energy and imports in Singapore: Empirical evidence from conditional error correction models. Energy Policy, 63, 514-520.
• Kocaaslan, O. (2013). The causal link between energy and output growth: Evidence from Markov switching Granger causality. Energy Policy, 63, 1196–1206.
• Kónya, L., 2004. Export-Led Growth, Growth-Driven Export, Both or None? Granger Causality Analysis on OECD Countries. Applied Econometrics and International Development 4(1), 73-94.
• Kum, H., Ocal, O., Aslan, A., 2012. Therelationshipamongnaturalgasenergyconsumption, capitalandeconomicgrowth: Bootstrap-correctedcausalitytestsfrom G-7 countries. RenewableandSustainableEnergyReviews 16(5), 2361–2365.
• Larsson, R.,Lyhagen, J., Lothgren, M., 2001. Likelihood-basedcointegrationtests in heterogeneouspanels. EconometricsJournal, RoyalEconomicSociety 4(1), 41.
• Lean, H.H., Smyth, R., 2010a. On the dynamics of aggregate output, electricity consumption and exports in Malaysia: Evidence from multivariate Granger causality tests. Applied Energy 87, 1963-1971.
• Lean, H.H., Smyth, R., 2010b. Multivariate granger causality between electricity generation, exports, prices and GDP in Malaysia.Energy 35, 3640-3648.
• Lee, C., 2006. The causality relationship between energy consumption and GDP in G-11 countries revisited. Energy Policy 34, 1086-1093.
• Lee, C., Chien, M., 2010.Dynamic modelling of energy consumption, capital stock, and real income in G-7 countries. Energy Economics 32, 564-581.
• Lewer, J.J., Van den Berg, H., 2003. How large is International Trade’s Effect on Economic Growth?. Journal of Economic Surveys 17(3), 363-396.
• Li, L., 2010. An Empirical Analysis of Relationship between Export and Energy Consumption in Shandong Province.International Journal of Business and Management 5(3), 214-216.
• McCoskey, S., Kao, C., 1998.A residual-based test of the null of cointegration in panel data. Econometric Reviews 17(1), 57-84.
• Mohammadi, H. and Parvaresh, S. (2014). Energy consumption and output: Evidence from a panel of 14 oil-exporting countries. Energy Economics, 41, 41–46.
• Narayan P.K., Smyth, R., 2008.Energy consumption and real GDP in G7 countries: New evidence from panel cointegration with structural breaks. Energy Economics 30, 2331–2341.
• Narayan, P.K., Smyth, R., 2009. Multivariate Granger causality between electricity consumption, exports and GDP: evidence from a panel of Middle Eastern countries. Energy Policy 37, 229–236.
• Narayan, P.K.,Popp, S., 2012. The energy consumption-real GDP nexus revisited: Empirical evidence from 93 countries. Economic Modelling 29, 303–308.
• Nasreen, S. and Anwer, S. (2014). Causal relationship between trade openness, economic growth and energy consumption: A panel data analysis of Asian countries.Energy Policy, 69, 82–91.
• OECD International Trade Statistics http://www.oecd.org/trade/its/45052263.pdf
• Ozturk, I., 2010. A literature survey on energy-growth nexus. Energy Policy 38 340–349.
• Payne, J.E., 2009. On the dynamics of energy consumption and employment in Illinois.Journal of Regional Analysis and Policy 39(2), 126-130.
• Payne, J.E., 2010. Survey of the international evidence on the causal relationship between energy consumption and growth. Journal of Economic Studies 37, 53-95.
• Pedroni, P., 1999. Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors. Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, 6, 653-670.
• Pedroni, P., 2000. Fully Modified OLS for Heterogeneous Cointegrated Panels, Department of Economics Working Papers 2000-03, Department of Economics, Williams College.
• Pedroni, P., 2001. Purchasing Power Parity Tests InCointegrated Panels. The Review of Economics and Statistics 83(4), 727-731.
• Pedroni, P., 2004. Panel Cointegration: Asymptotic And Finite Sample Properties Of Pooled Time Series Tests With An Application To The PPP Hypothesis. Econometric Theory, Cambridge University Press 20(03), 597-625.
• Pesaran, M.H., 2007. A Simple Panel Unit Root Test in the Presence of Cross-Section Dependence.Joural of Applied Econometrics 22, 265–312.
• Phillips, P.C.B., Ouliaris, S. 1990. Asymptotic Properties of Residual Based Tests for Cointegration.Econometrica, Econometric Society 58(1), 165-193.
• Ray, S., 2011.A Causality Analysis on the Empirical Nexus between Export and Economic Growth: Evidence from India. International Affairs and Global Strategy 1, 24-38.
• Sadorsky, P., 2011. Trade and energy consumption in the Middle East. Energy Economics 33, 739–749
• Sadorsky, P., 2012. Energy consumption, output and trade in South America. Energy Economics, 34, 476-488.
• Sadorsky, P., 2013. Do urbanization and industrialization affect energy intensity in developing countries?. Energy Economics 37, 52–59.
• Samad, A., 2011. Exploring Exports and Economic Growth Causality in Algeria. Journal of Economics and Behavioral Studies 2(3), 92-96.
• Sami, J., 2011. Multivariate Cointegration and Causality between Exports, Electricity Consumption and Real Income per Capita: Recent Evidence from Japan. International Journal of Energy Economics and Policy 1(3), 59-68.
• Shahbaz M., 2012. Does trade openness affect long run growth? Cointegration, causality and forecast error variance decomposition tests for Pakistan. Economic Modelling 29, 2325–2339.
• Shahbaz, M., Lean, H. H., Farooq, A., 2013a.Natural Gas Consumption and Economic Growth in Pakistan. Renewable and Sustainable Energy Reviews 18, 87-94.
• Shahbaz, M.,Saleheen, K., Tahir, M. I., 2013b.The dynamic link between energy consumption, economic growth, financial development and trade in China: fresh evidence from multivariate framework analysis.Energy Economics 40, 8-21.
• Shahbaz, M., Uddin, G. S., Rehman, I. and Imran, K. (2014a).Industrialization, electricity consumption and CO2 emissions in Bangladesh. Renewable and Sustainable Energy Reviews, 31, 575–586.
• Shahbaz, M., Nasreen, S., Ling, C. H. and Sbia, R. (2014b). Causality between trade openness and energy consumption: What causes what in high, middle and low income countries. Energy Policy, 70, 126–143.
• Soytas, U., Ramazan, S., 2003. Energy consumption and GDP: causality relationship in G-7 countries and emerging markets. Energy Economics 25, 33-37.
• Soytas, U., Ramazan S., 2006.Energy consumption and income in G-7 countries. Journal of Policy Modeling 28, 739-750.
• Westerlund, J., 2005. New Simple Tests for Panel Cointegration, Econometric Reviews, Taylor & Francis Journals 24(3), 297-316.
• Westerlund, J., 2007. Testing for Error Correction in Panel Data.Oxford Bulletin of Economics and Statistics 69(6), 709-748.
• Johansen, S., and K. Juselius. (1992). Testing Structural Hypotheses in a Multivariate Cointegration Analysis of the PPP and the UIP for UK. Journal of Econometrics, 53(-13), 211-244.
• Johansen, S., R. Mosconi and B. Nielsen. (2000). Cointegration Analysis in the Presence of Structural Breaks in the Deterministic Trend. Econometric Journal, 3(2), 216-249.
• Dinda, S. and D. Coondoo. (2006). Income and Emission: a Panel Data-based Cointegration Analysis. Ecological Economics, 57, 167-181.
• Yıldırım, E., Sukruoglu, D. and Aslan, A. (2014). Energy consumption and economic growth in the next 11 countries: The bootstrapped autoregressive metric causality approach. Energy Economics, 44, 14–21.
• Zhang, B., Chen, Z.M., Xia, X. H., Xu, X. Y. and Chen, Y. B. (2013). The impact of domestic trade on China's regional energy uses: A multi-regional input–output modelling. Energy Policy, 63, 1169–1181.