renewable and non renewable energy growth emissions linkages review of emerging trends with policy implications abstract this study is an extension of the previous studies which focused mainly on energy growth nexus but fails to consider the carbon emission implication of this relationship the methodology of the study permits a comprehensive and comparative analysis of existing studies on renewable and non renewable energy growth emission nexus in order to draw some implications for policy and research the survey revealed the extent of the spread of studies across issues time and geographical space countries and regions it also disclosed the range of methodological approaches adopted to analyse the issues over time and the frequency of their use it unravelled the varied findings across countries and regions given the diverse methods employed and specific features of the economies analysed arising from the literature survey this study highlights the existing gaps in the literature and new direction for policy and research the general policy implication of the findings of this study is that pollution effect of energy growth nexus should be taken into consideration in policy formulation for sustainable development further the design of regional and global policies should recognise the fact that energy growth emission linkages varied across countries even in the same region some new direction for research on renewable and non renewable energy growth emission linkages pointed out in this survey includes the following future research on energy growth nexus without considering the pollution impact may not contribute so much to the literature studies should investigate the substitution complementary effects of the energy varieties on growth emission nexus while new methodological contributions are imperative

innovation and regional growth in small high technology firms evidence from britain and the usa oakey r p 1984 innovation and regional growth in small high technology firms evidence from britain and the usa reg studies 18 237 251 this paper examines the varying impact of regional resources on innovation in small high technology firms evidence is drawn from diverse local economies ranging from the development region of scotland through the south east of england to the bay area of california measurement focuses on the key inputs to innovation of research and development and investment capital surprisingly the findings indicate encouraging small firm innovation and growth in scotland an anticipated higher incidence of venture capital funding in the usa is confirmed and quantified with concluding comments on the policy implications resulting from this discrepancy

how strong is the causal relationship between globalization and energy consumption in developed economies a country specific time series and panel analysis we examine the causal relationship between globalization economic growth and energy consumption for 25 developed economies using both time series and panel data techniques for the period 1970 2014 due to the presence of cross sectional dependence in the panel countries from asia north america western europe and oceania we employ the pesaran 2007 cips test to ascertain unit root properties the westerlund 2007 cointegration test indicates the presence of a long run association between globalization economic growth and energy consumption long run heterogeneous panel elasticities are estimated through the pesaran 2006 common correlated effects mean group cmg estimator and the eberhardt and teal 2010 augmented mean group amg estimator the causality between the variables is examined via dumitrescu and hurlin 2012 and emirmahmutoglu and kose 2011 granger causality tests the empirical results reveal that for most countries globalization increases energy consumption in the usa and uk globalization is negatively correlated with energy consumption the causality analysis indicates the presence of the globalization driven energy consumption hypothesis this empirical analysis suggests insightful policy guidelines for policy makers using globalization as an economic tool to utilize energy efficiently for sustainable economic development in the long run

exchange rates and the political economy of macroeconomic discipline during the last few years there has been an increasing interest in understanding the relationship between exchange rate regimes and macroeconomic stability some recurrent policy questions are a why do countries still choose fixed nominal exchange rate regimes 25 years after the abandonment of the bretton woods system b do fixed exchange rate regimes impose an effective constraint on monetary and fiscal behavior thus lowering inflation rates over the long run and c are exchangerate based stabilization programs superior to money based programs this paper deals with the first question the selection of the exchange rate regime from a politicaleconomy perspective why certain countries choose a particular type of exchange rate regime is a highly relevant question why does austria have a fixed exchange rate for example while the united kingdom has a flexible one why has argentina chosen a fixed exchange rate while chile has a flexible cumbands system more generally in december 1992 why did 84 countries out of the 167 reported in the imf s international financial statistics peg their currencies to a major currency or a currency composite the theoretical discussion deals with the trade off between credibility and flexibility and it emphasizes the role of politics and institutions in the empirical section i use a large cross country panel data set to analyze the role of various factors including political instability in decid

natural gas consumption and economic growth the role of foreign direct investment capital formation and trade openness in malaysia the objective of this paper is to reinvestigate the relationship between natural gas consumption and economic growth by including foreign direct investment capital and trade openness in malaysia for the period of 1971 2012 the structural break unit root test is employed to investigate the stationary properties of the series we have applied combined cointegration test to examine the relationship between the variables in the long run for robustness sake the ardl bounds testing method is also employed to test for a possible long run relationship in the presence of structural breaks we note the validity of cointegration between the variables natural gas consumption foreign direct investment capital formation and trade openness have positive influence on economic growth in malaysia the results support the presence of feedback hypothesis between natural gas consumption and economic growth foreign direct investment and economic growth and natural gas consumption and foreign direct investment the policy implications of these results are provided

nexus between non renewable energy demand and economic growth in bangladesh application of maximum entropy bootstrap approach abstract the paper analyzes the causal relationship between energy demand and economic growth in bangladesh using annual time series data from 1980 to 2011 from world development indicator wdi database of the world bank since the results of causal direction are sensitive to the models being employed the paper uses maximum entropy bootstrap meboot due to its superiority to overcome small sample bias and limitation of asymptotic distribution theory to avoid the omitted variables bias the paper uses multivariate framework in production function specification the paper finds that a unidirectional causality runs from economic growth to energy demand which indicates that conservative policy might not harm the bangladesh economy but since economic progress leads higher energy consumption demand side management of energy and exploring renewable energy sources are must the implications are discussed

turn on the lights macroeconomic factors affecting renewable energy in pakistan the objective of the study is to examine the relationship between macroeconomic factors i e population growth urbanization industrialization exchange rate price level food production index and live stock production index and renewable energy in pakistan over a period of 1975 2012 in addition this study uses oil rent as an intervening variable to overcome the biasness of the single equation model the results indicate that macroeconomic factors positively contributed to renewable energy consumption in pakistan the causality test indicate that there is a unidirectional causality running towards macroeconomic factors to renewable energy in pakistan however renewable energy granger cause oil rent but not via other route in addition there is bidirectional causality between exchange rate and live stock production in pakistan variance decomposition analysis shows that economic growth has a major contribution to increase renewable energy in pakistan

the economics of development a survey i the subject our definition of the subject will be the use of economic analysis to understand the economies of poor or developing countries this includes in particular how standards of living in the population are determined and how they change over time and further how policy can or should be used in the influence of these processes the definition contains in principle much or most of analytical methods in economics insofar as they can be put to use in the examination of the issues of interest this is as it should be but it poses a problem for a survey in a journal a comprehensive treatment is infeasible so we shall follow a different route the survey will focus on what i take to be the major themes and approaches which characterise the productive aspects of the subject there is therefore no pretence at being exhaustive the purpose is rather to highlight some of the advances many of these have been of real substance there are a number of possible purposes for a survey and it is important to be clear at the outset for whom it is intended what it is and what it is not this survey is addressed to economists and students of economics who know the tools of their trade but not necessarily how they have been applied to and fashioned for the analysis of the economics of developing countries it is a description of the ways in which problems can be productively formulated and approached in terms of examples chosen for their intrinsic importance and interest the vastness of the subject means that we have to be highly selective it does not seek to provide a summary evaluation of the current view of the appropriate response to immediate policy questions it is not a history of thought nor a research manifesto nor an attempt to adjudicate or settle the major debates where they arise naturally from the major purpose some judgements on these subjects will be offered but they do not themselves constitute the primary intent of this survey there are three lines of enquiry or sets of questions which have i suggest been distinctive of the most fruitful work in development economics they will

bounds test approach to cointegration and causality between nuclear energy consumption and economic growth in india abstract this paper attempts to examine the dynamic relationship between economic growth nuclear energy consumption labor and capital for india for the period 1969 2006 applying the bounds test approach to cointegration developed by pesaran et al 2001 we find that there was a short and a long run relationship between nuclear energy consumption and economic growth using four long run estimators we also found that nuclear energy consumption has a positive and a statistically significant impact on india s economic growth further applying the toda and yamamoto 1995 approach to granger causality and the variance decomposition approach developed by pesaran and shin 1998 we found a positive and a significant uni directional causality running from nuclear energy consumption to economic growth without feedback this implies that economic growth in india is dependent on nuclear energy consumption where a decrease in nuclear energy consumption may lead to a decrease in real income for a fast growing energy dependent economy this may have far reaching implications for economic growth india s economic growth can be frustrated if energy conservation measures are undertaken without due regard to the negative impact they have on economic growth

disaggregated energy consumption and gdp in taiwan a threshold co integration analysis abstract energy consumption growth is much higher than economic growth for taiwan in recent years worsening its energy efficiency this paper provides a solid explanation by examining the equilibrium relationship between gdp and disaggregated energy consumption under a non linear framework the threshold co integration test developed with asymmetric dynamic adjusting processes proposed by hansen and seo hansen b e seo b 2002 testing for two regime threshold cointegration in vector error correction models journal of econometrics 110 293 318 is applied non linear co integrations between gdp and disaggregated energy consumptions are confirmed except for oil consumption the two regime vector error correction models vecm show that the adjustment process of energy consumption toward equilibrium is highly persistent when an appropriately threshold is reached there is mean reverting behavior when the threshold is reached making aggregate and disaggregated energy consumptions grow faster than gdp in taiwan

natural gas consumption and economic growth nexus panel data analysis for gcc countries abstract this study investigates the relationship between natural gas energy consumption and economic growth by including trade openness total labor force and gross fixed capital formation as a major determinants of gdp growth within the multivariate framework model in gulf cooperation council gcc countries a panel gdp model is constructed taking the period of 1980 2012 the result revealed that natural gas energy consumption is cointegrated with gdp growth in the investigated countries in addition based on the panel dynamic ordinary least square dols and the fully modified ordinary least square fmols this study concluded that the natural gas energy consumption affects the gcc s countries gdp growth positively in the long run furthermore the results from the granger causality test revealed bidirectional causality between natural gas energy consumption and gdp growth which confirms the feedback hypothesis from the outcome of this research a number of policy implications were provided for the gcc countries

energy consumption economic growth nexus for pakistan taming the untamed abstract a recent survey of energy growth literature has highlighted the potential trade off between bivariate models that suffer from omitted variable bias and the danger of over parameterization of multivariate models in the individual country setting narayan and smyth 2 this is a serious limitation when the interest is in drawing policy implications for specific countries with short times series of available data the maximum entropy bootstrap approach was used to re examine the nature of causal relationship between energy consumption and economic growth for pakistan where the available time series data was only from 1971 to 2011 unlike the techniques used in much of the earlier literature this approach does not rely on asymptotic methods and therefore leads to robust inference even in small samples moreover the approach can be applied in the presence of non stationarity of any type and structural breaks without requiring data transformation for to achieving stationarity and is not sensitive to specification errors such as those in lag length selection the empirical findings based on both the bivariate as well as the multivariate frameworks supported the conservation hypothesis implying the existence of a unidirectional causality from economic growth to energy consumption

innovations and r d in northern ireland manufacturing a schumpeterian approach harris r and trainor m 1995 innovations and r d in northern ireland manufacturing a schumpeterian approach reg studies 29 593 604 given the importance of r d and innovative outputs and the change in regional policy in the 1980s to encourage an enterprise culture based inter alia on a high rate of innovations this paper attempts to explain the determinants of inventive activities in one of the most disadvantaged regions of the united kingdom a model incorporating the impact of market structure is estimated and it is found that in northern ireland higher r d spending leads to a higher probability of innovating while r d itself is positively affected by higher post innovation price cost margins thus r d spending and innovation outputs are beneficial to profitability and thus presumably the long term growth of firms however while market structure is important the direct effects of monopoly power are if anything negative thus the results presented by geroski 1990 are support

coffee economic fluctuations and stabilisation an intertemporal disequilibrium model with capital market imperfections abstract this paper develops a two period disequilibrium model of a small open economy under keynesian unemployment to analyse the effects of temporary anticipated and permanent coffee price shocks the model includes a government sector that administers a commodity price stabilisation fund and allows for capital market imperfections the type of capital market imperfection makes an important difference to the results of the model in particular when the government borrows on more favourable terms than individuals the coffee price stabilisation fund reduces the multiplier effects of temporary and permanent shocks not only in the first but also in the second period by contrast when individuals face an upward sloping supply of capital curve the stabilisation fund shifts some of these effects from the first to the second period

on becoming more flexible exchange rate regimes in latin america and the caribbean abstract this paper examines the shift from fixed to more flexible exchange rate regimes among countries in latin america and the caribbean in contrast to most traditional approaches the one followed here recognizes that fixed rates can be and often are adjusted but argues that policy makers incur a political cost from devaluation at the same time flexible exchange rates even managed ones may be very volatile with persistent misalignment a stylized model of regime choice is developed based on the perceived losses from exchange rate misalignment incurred under fixed versus more flexible regimes the model is estimated for a sample of 24 countries over the period 1978 1992 and empirical results are quite supportive misalignments proxied by current account deficits and moderate to high rates of inflation were associated with a move to more flexible rates during 1978 1986 misalignment indicators appear to have mattered less during 1987 1992 however there appears to have been a major reduction in the perceived difficulty of managing flexible rates during this period the paper then cautions against attributing differences in economic growth between groups of countries to their exchange regime the central point here is that the endogeneity of regime choice introduces selection biases into the samples of countries with fixed and with more flexible exchange regimes

coffee export booms and monetary disequilibrium some evidence for colombia the theoretical models that analyse the monetary consequences of export booms show that under a regime of fixed exchange rates they affect not only the demand for money via real income but also the money supply via foreign exchange accumulation within this theoretical framework this study proposes an empirical approach to determine whether the coffee booms of the second half of the 1970s and mid 1980s led to excess money supply in the colombian economy the findings provide evidence in favour of a direct association between coffee export booms and excess money supply implying that external disturbances jeopardize the ability of the economic authorities to carry out successful monetary policy

natural gas consumption and economic growth in pakistan abstract natural gas is a dominant fuel in pakistan it offers the cheapest and a cleaner alternative source of energy this paper examines the relationship of natural gas consumption and economic growth in pakistan we include capital labor and exports in the model with multivariate framework the ardl bounds testing approach to cointegration and innovative accounting approach are employed to investigate the dynamic causality relationships among the variables we find the existence of long run relationship among the variables natural gas consumption capital labor and exports are positively affecting economic growth in pakistan furthermore we support the natural gas consumption led growth hypothesis and suggest that natural gas conservation policies may retard economic growth

the role of natural gas consumption and trade in tunisia s output this paper examines the impact of natural gas consumption real gross fixed capital formation and trade on the real gdp in case of tunisia over the period of 1980 2010 we used auto regressive distributed lag ardl bounds testing approach to test the existence of long run relationship between the variables the vector error correction method vecm granger approach is applied to test the direction of causal relation between the series our findings indicate the existence of long run relationship among the variables natural gas consumption real gross fixed capital formation and trade add in economic growth natural gas consumption real gross fixed capital formation and real trade granger cause real gdp these findings open up new insights for policy makers to formulate a comprehensive energy policy to sustain economic growth for long run

employment changes and input output linkages in key technology industries a comparative analysis bathelt h 1991 employment changes and input output linkages in key technology industries a comparative analysis reg studies 25 31 43 in order to achieve a better understanding of employment changes and input output linkages of key technology firms it was considered necessary to undertake a survey among key technology firms identified by three digit sic codes from five key technology regions in north america the regions of boston massachusetts research triangle north carolina atlanta georgia ottawa ontario and canada s technology triangle around kitchener waterloo ontario were included a total of 160 interviews was conducted among key technology firm executives managers with a rejection rate of only 10 overall significant growth activities were identified in each of the regions resulting in a total of about 40 000 new jobs during the 1980s within the firms surveyed employment in key technology industries was found to be extremely concentrated in large firms and specific secto

the growth of income and energy consumption in six developing countries this paper reexamines the inter temporal link between energy consumption and income in six developing countries with diverse economic backgrounds and energy statistics in a production function framework we employ the generalized variance decompositions and generalized impulse response techniques to see if the growth of income and energy consumption contains considerable information to predict each other in all countries energy appears as an essential factor of production results indicate that energy may be a relatively more important input than labor and or capital in some countries hence neutrality of energy does not seem to hold

energy for economic growth industrialization environment and natural resources living with just enough abstract this study investigates the causal relationship between energy consumption i e nuclear energy consumption electricity power consumption and fossil fuels energy consumption and economic growth energy consumption and industrialization i e industrial gdp beverages and cigarettes energy consumption and environmental degradation i e carbon dioxide emissions population density and water resources and finally energy consumption and resource depletion i e mineral depletion energy depletion natural depletion and net forest depletion in pakistan over a period of 1975 2011 the granger causality gc test in the frequency domain using the pierce framework has been employed this gc test in the frequency domain relies on a modified version of the coefficient of coherence which they estimate in a nonparametric fashion and for which they derive the distributional properties the results infer that there exists uni directional causality running from nuclear energy to industrial gdp nuclear energy to water resources and nuclear energy to carbon dioxide emissions but not vice versa similarly electric power consumption granger cause agriculture gdp but not other way around further there is a bi directional causality running between electric power consumption to population density in pakistan fossil fuel granger cause industrial gdp and there is a bidirectional causality running between fossil fuel and population density moreover the findings show that the nature of causality among nuclear energy consumption agriculture nuclear energy consumption population density electric power consumption cigarettes production fossil fuel cigarettes and fossil fuels and agriculture value added are in favour of the neutrality hypothesis in pakistan the conclusion has been strengthen and have a very strong implications in the context of pakistan where we have economic and financial constraints and thus agreeing the bottom line living with the just enough

electricity and growth nexus dynamics in singapore fresh insights based on wavelet approach abstract this study examines the empirical relationship of electricity generation egen and economic growth ipi in singapore by using the flexible properties of the wavelet approach this innovative technique allows the decomposition of time series across time scales in this study we used continuous wavelet transform cross wavelet and wavelet coherence ratios to investigate the relationship between egen and ipi by using the monthly data from 1983 1 to 2016 1 results of autoregressive distributed lag and johansen juselius cointegration tests show that there is a significant long run relationship the mentioned variables in singapore furthermore results indicate that there is a unidirectional causal relationship running from egen to ipi in the long run while a bidirectional causal interplays are depicted between the of egen on ipi in medium run thus it can be recommended that government needs to increase electricity generation and further providing and nurturing the expansion of electricity supply in country which will ultimately benefits the economic growth

energy consumption and economic growth evidence from china at both aggregated and disaggregated levels using a neo classical aggregate production model where capital labor and energy are treated as separate inputs this paper tests for the existence and direction of causality between output growth and energy use in china at both aggregated total energy and disaggregated levels as coal oil and electricity consumption using the johansen cointegration technique the empirical findings indicate that there exists long run cointegration among output labor capital and energy use in china at both aggregated and all three disaggregated levels then using a vec specification the short run dynamics of the interested variables are tested indicating that there exists granger causality running from electricity and oil consumption to gdp but does not exist granger causality running from coal and total energy consumption to gdp on the other hand short run granger causality exists from gdp to total energy coal and oil consumption but does not exist from gdp to electricity consumption we thus propose policy suggestions to solve the energy and sustainable development dilemma in china as enhancing energy supply security and guaranteeing energy supply especially in the short run to provide adequate electric power supply and set up national strategic oil reserve enhancing energy efficiency to save energy diversifying energy sources energetically exploiting renewable energy and drawing out corresponding policies and measures and finally in the long run transforming development pattern and cut reliance on resource and energy dependent industries

does financial development lead economic growth a vector auto regression appraisal using a vector autoregression var approach several hypotheses are re examined suggested by the literature concerning the relationship between financial development and economic growth investment and productivity the models use quarterly time series data from ten oecd countries and china innovation accounting or variance decomposition and impulse response function analysis is applied to examine interrelationships between variables in the var system and therefore differs from the more usual granger causality approach in particular it examines the relationship between financial development proxied by total credit at best weak support is found for the hypothesis that financial development leads economic growth

endogenous changes in the exchange rate regime a bureaucratic incentive model public choice submits that legal changes can be endogenous in such a way that they are manipulated by bureaucrats who want to maximize rents from transactions with various interest groups this paper takes the change in exchange rate regimes to empirically examine the premise it offers a two stage method in which we first show that the exchange rate is influenced by interest group pressures and subsequently that the 1990 market average regime mar as a phase in policy in korea was introduced mainly to serve bureaucratic incentives this method is expected to be useful to a host of countries for various studies attempting to test a possible existence of bureaucratic or other hidden motivations behind any isolated event of policy change

the role of globalization in energy consumption a quantile cointegrating regression approach abstract this paper examines the quantile behavior of the relationship between the nuances of globalization and energy consumption while incorporating capital and economic growth in case of top two most globalized countries netherlands and ireland by employing the recently developed quantile autoregressive distributed lag qardl model of cho et al 2015 the model is estimated using quarterly data over the period 1970q1 2015q4 the results indicate that the relationship is quantile dependent which may reveal misleading results in studies using traditional analyses that address the averages the wald test confirms our findings by rejecting the null hypothesis of parameter constancy for both the netherlands and ireland the changes in energy consumption are more responsive to past levels and past changes in globalization than the adjustment provided by the error correction method ecm interestingly the findings indicate that globalization is positively correlated with energy consumption in the long term for the two countries furthermore globalization shares a robust long term relationship with energy consumption energy consumption is strongly related to globalization in the long term however the short term effects of globalization on energy demand are limited for those countries important policy implications are then suggested based on the empirical results

politics and exchange rate forecasts abstract standard exchange rate models perform poorly in out of sample forecasting when compared to the random walk model we posit part of the poor performance of these models may be due to omission of political factors we test this hypothesis by including political variables that capture party specific election specific and candidate specific characteristics surprisingly we find our political model outperforms the random walk in out of sample forecasting at 1 12 month horizons for the pound dollar mark dollar pound mark and the trade weighted dollar mark and pound exchange rates

the relationship among natural gas energy consumption capital and economic growth bootstrap corrected causality tests from g 7 countries abstract this paper examines the relationship between natural gas consumption economic growth and capital by using g 7 countries data and a bootstrap corrected causality test for the period 1970 2008 it was found eight significant granger causality relationships for italy the granger causality is from natural gas consumption to growth and united kingdom adverse for pattern of france germany and united states there is two sided granger causality between natural gas and growth

a note on the causal relationship between energy and gdp in taiwan abstract this paper re examines the causality between energy consumption and gdp by using updated taiwan data for the period 1954 1997 as a secondary contribution we investigate the causal relationship between gdp and the aggregate as well as several disaggregate categories of energy consumption including coal oil natural gas and electricity applying granger s technique we find bidirectional causality between total energy consumption and gdp we find further that different directions of cause exist between gdp and various kinds of energy consumption

the energy growth nexus in thailand does trade openness boost up energy consumption the nexus between trade openness and energy demand is hot topic of discussion among academicians and researchers and numerous studies are available in existing literature while investigating the nexus between trade openness and energy demand this paper explores the relationship between energy consumption trade openness and economic growth in case of thailand in doing so we have applied bayer and hanck cointegration approach to test whether the long run relationship exists between the variables our results confirm the presence of cointegration between the variables energy consumption stimulates economic growth trade openness adds in economic growth the causality analysis reveals that energy consumption granger causes economic growth and in resulting economic growth granger causes energy consumption trade openness and energy consumption are interdependent i e trade openness granger causes energy consumption and in return energy consumption granger causes trade openness this paper openness up new directions for policy making authorities in thailand to design a comprehensive energy and trade policies to sustain economic growth for long run

the relationship between natural gas consumption and economic growth in opec members the purpose of this study is to examine the relationship between natural gas consumption and economic growth in 12 opec member countries for the period of 1980 2012 the paper adopts the panel granger causality test of dumitrescu and hurlin 2012 21 to assess the causal relationship between natural gas consumption and economic growth the findings show the evidence of feedback relation between natural gas consumption and economic growth in opec members as a panel however diverse results are obtained when the member countries are individually examined the results provide evidence for growth hypothesis in iraq kuwait libya nigeria and saudi arabia but conservation hypothesis in algeria iran united arab emirates and venezuela further evidence suggests the existence of neutrality hypothesis in angola and qatar and feedback hypothesis in ecuador

financial development environmental quality trade and economic growth what causes what in mena countries this paper examines the relationship between financial development co2 emissions trade and economic growth using simultaneous equation panel data models for a panel of 12 mena countries over the period 1990 2011 our results indicate that there is evidence of bidirectional causality between co2 emissions and economic growth economic growth and trade openness are interrelated i e bidirectional causality feedback hypothesis is validated between trade openness and financial development neutrality hypothesis is identified between co2 emissions and financial development unidirectional causality running from financial development to economic growth and from trade openness to co2 emissions is identified our empirical results also verified the existence of environmental kuznets curve these empirical insights are of particular interest to policymakers as they help build sound economic policies to sustain economic development and to improve the environmental quality

autoregressive modelling and money income causality detection abstract a step wise procedure based on granger s concept of causality and abaike s final prediction error criterion is suggested as a practical means to identify the order of lags of each variable in a multivariate autoregressive process the model seems useful because it can serve as a reduced form formulation to avoid imposing often spurious or false restrictions of the model it also provides a reasonably powerful test of causality the idea is applied to u s postwar money and income data it is found that between m1 and gnp a bivariate feedback model fits the data best between m2 and gnp a one way causal model from money to income performs better diagnostic checks applied to our model seem to indicate the adequacy of our approach

causal interactions between trade openness renewable electricity consumption and economic growth in asia pacific countries fresh evidence from a bootstrap ardl approach abstract this paper applies a new bootstrap autoregressive distributed lag a r d l approach to examine the nexus between trade openness renewable electricity consumption and economic growth for seven countries in the asia pacific region during 1980 2017 period in fact there is no evidence of cointegration among real trade openness electricity consumption and real g d p per capita in countries with the exception of malaysia where real g d p serves as dependent variable however cointegration does manifest in the cases of indonesia japan south korea and thailand when trade openness is used as the dependent variable a similar outcome is observed for indonesia malaysia and thailand when renewable electricity consumption is used as the dependent variable a short run analysis reveals mixed results in term of the direction of the causality among different variables for various countries such results have implications for trade energy and environmental policies one implication is that any environmental policy aiming to reduce the use of non renewable energy and carbon dioxide emissions will inevitably lead to greater renewable energy consumption which in turn may enhance trade openness and ultimately accelerate economic growth

natural gas consumption and economic development in china and japan an empirical examination of the asian context abstract this paper examined the relationship between natural gas consumption and economic development in two largest natural gas consumers in asia namely china and japan for the period of 1980 2012 it used the autoregressive distributed lags ardl method for the empirical analysis the findings revealed some similarities in the natural gas consumption and economic development nexus in china and japan thus a cointegration relationship between natural gas consumption and economic development was found to exist both in china and japan however there was an important difference in the findings in the case of china the findings indicated the existence of a unidirectional causality from natural gas consumption to economic development which was in line with the growth hypothesis in japan there was a bidirectional causality between natural gas consumption and economic development which supported the feedback hypothesis

natural gas consumption and economic growth nexus is the 10th malaysian plan attainable within the limits of its resource abstract the 10th malaysia plan 10mp is a strategic plan focused on attaining a level of economic growth that will enable the country to attain a developed nation status by 2020 as a result of this ambitious plan this paper aims to investigate empirically if the nexus between natural gas consumption exports capital and labour could provide a clue to the possibilities of reaching this target the study applied time series data from 1971 to 2012 and used dual structural break tests to ensure robust result the bayer hanck cointegration johansen cointegration and the ardl bounds tests were applied the findings of the study reveal that economic growth does not granger cause natural gas consumption in malaysia however the results show that capital and export contribute 29 18 and 41 46 to the country s gdp after 20 04 and 42 29 of natural gas consumption respectively also it suggests that natural gas consumption has an indirect effect to the malaysian economic growth wherewithal labour was on the other hand found to have a minimal contribution to gdp the study proposes the efficient exploitation of natural gas reserves of the country a concerted effort to develop the labour force and ensure a realistic time for the plan among others

the short and long run causality relationship among economic growth energy consumption and financial development evidence from south mediterranean countries smcs abstract this study aims at examining the short run and long run causal link between economic growth energy consumption and financial development by using data set of 6 smcs for the 1995 2015 periods the basic testing procedure requires four steps adf and pp unit root tests bound tests for co integration ardl approach and vecm method the results confirm cointegration between the variables it means that the long run relationship exists the short run causal relationships unidirectional exist at least once for each country except egypt the granger causality results for individual countries give mixed results these results urge for the attention of the policy makers in smcs to design a comprehensive energy conservation policy to minimize the consequences of massive energy consumption on economic growth by adding financial development

economic adjustment and exchange rates in developing countries in spite of the attention paid exchange rates in recent economic debates on developing countries relatively few studies have systematically analyzed in detail the various ramifications of exchange rate policy in these countries in this new volume from the national bureau of economic research leading economists use rigorous models to tackle various exchange rate issues while also illuminating policy implications that emerge from their analyses the volume divided into four main sections addresses the role of exchange rates in stabilization programs and the adjustment process the importance of exchange rate policy during liberalization reform in developing countries exchange rate problems relevant and unique to developing countries illustrated by case studies and the problems defining measuring and identifying determinants of real exchange rates authors of individual papers examine the relation between commercial policies and exchange rates the role of exchange rate policy in stabilization programs the effectiveness of devaluations as a policy tool and the interaction between exchange rate terms of trade an capital flow this research will not only prove crucial to our understanding of the role of exchange rates in developing countries but will clearly set the standard for future work in the field

a multivariate cointegration analysis of the role of energy in the us macroeconomy abstract this paper extends my previous analysis of the causal relationship of gdp and energy use in the usa in the post war period a majority of the relevant variables are integrated justifying a cointegration analysis the results show that cointegration does occur and that energy input cannot be excluded from the cointegration space the results are plausible in terms of macroeconomic dynamics the results are similar to my previous granger causality results and contradict claims in the literature based on bivariate models that there is no cointegration between energy and output

effects of financial development indicators on energy consumption and co2 emission of european east asian and oceania countries the financial crisis is considered a major economic issue and energy consumption and pollution are believed to be one of the most important environmental concerns in the new millennium the review on investigation of the nexus among energy consumption gdp growth financial development and co2 emission has shown no definitive conclusion apart from that the effects of financial development on energy consumption are not yet understood properly thus this article investigates the effects of financial indicator shocks i e credit market and stock market shocks on energy consumption and carbon dioxide co2 emissions and vice versa panel vector auto regression pvar models were employed to investigate the relationships in 13 european and 12 east asia and oceania countries from 1989 to 2011 findings emphasize the important role of co2 emission and energy consumption on explaining each other s deviation with only the degree of effect differing although energy consumption and co2 emission shocks on financial indicators such as private sector credit is not very pronounced in both groups of countries but the strength of energy consumption shock on stock return rate in european countries is greater than east asian and oceania countries conversely shocks to stock return rate influence energy consumption especially in long horizon in case of east asia and oceania countries

the impact of economic globalization on renewable energy in the oecd countries abstract this paper analyzes the determinants of renewable energy consumption in the panel data of 30 oecd countries for the period from 1970 to 2015 the unique role is given to the effect of economic globalization on renewable energy we consider several measures of economic globalization and apply different econometric techniques we find the positive impact of the per capita income the per capita carbon dioxide emissions and the real price of oil on renewable energy also a higher level of economic globalization promotes renewable energy and the evidence is robust to the different measures of economic globalization in line with our findings promoting the economic aspects of globalization will enhance renewable energy thus it can suppress the adverse effect of climate change and global warming on living human beings and natural habitats in the long run therefore we need to enhance our knowledge of how globalization promotes renewable energy not only for the oecd countries but also for other developing and developed economies from a policy perspective we suggest that policymakers and governments in oced countries should consider economic globalization as a renewable energy promoting mechanism while designing their energy demand policy for the protection of natural environmental health

energy conservation policies growth and trade performance evidence of feedback hypothesis in pakistan this study investigates the relationship between energy consumption and trade openness in pakistan by using the annual time series data for the period of 1973 2011 our main results show i the presence of long run link between energy consumption and trade performance ii positive impact of gross domestic product exports and imports on energy consumption iii bidirectional causal relationship between exports and energy consumption and also be tween imports and energy demand and iv bidirectional causality between gross domestic product and energy consumption points to the presence of feedback hypothesis in pakistan we therefore note that energy conservation policies will reduce the trade performance which in turn leads to the decline in economic growth in pakistan the present study may guide policymakers in formulating a conclusive energy and trade policies for sustainable growth for long span of time

domestic and foreign price links in an aggregate supply framework the case of greece abstract using price and wage equations an aggregate supply relationship is derived which relates domestic to foreign prices and output it is shown that among all parameters only the degree of wage indexation matters to the question of whether the nominal exchange rate can affect competitiveness cointegration results support the existence of a long run relationship among the variables of the model which is in conformity with the relationship derived in the theoretical part of the paper empirical analysis a does not confirm relative purchase power parity for greek wholesale price indices and b does not contradict the hypothesis that greek producer prices are homogeneous of degree one in foreign prices

linking financial development economic growth and energy consumption in pakistan abstract this paper aims at exploring the finance growth energy nexus for pakistan over the 1972 2012 period by employing the system gmm estimation technique the study tries to capture the impact of financial development over energy consumption through economic growth channel and includes energy prices and urbanization in the structural model the study finds positive and significant impact of economic growth and urbanization on energy consumption while the effect of energy prices over energy consumption is significant but negative financial development positively and significantly affects energy consumption through the economic growth channel our analysis is important for policy makers for effective energy demand planning and conservation policies that would ensure sustainable economic development as well as serve as motivation to search alternative energy sources to meet the bourgeoning energy demand in pakistan

route 128 the development of a regional high technology economy abstract a corner of massachusetts not far from boston s route 128 has become a world center of high technology hundreds of enterprises mainly in electronics based industries employ over 250 000 people 75 000 of whom were added between 1975 and 1980 enterprises founded after world war ii have spearheaded growth in the state with a rapid rate of new firm formation continuing through the 1970s this paper examines the state s high tech growth to determine what caused it to happen where it did and assess the special role of new enterprises in promoting it the development is found to have been largely indigenous and spontaneous rather than the result of a concerted effort to attract industry massachusetts distinguished universities and their research laboratories an inherited technological infrastructure the importance of agglomeration externalities and the good fortune of having a home grown firm become the world s leading manufacturer of minicomputers were major contributors to the state s success but the enormous opportunities for new enterprises which the electronics revolution generated and the tendency for such firms to start up mainly as spin offs from other high tech firms or from university laboratories and to remain close to their sources fueled the tendency towards spatial concentration

real exchange rate variability and the choice of exchange rate regime by developing countries abstract this paper draws together two distinct strands of the exchange rate literature it proposes that real exchange rate variability and the choice of exchange rate regime are jointly determined i test this claim by estimating a simultaneous limited dependent variable model with data from a cross section of developing countries during the recent floating period drawing on the relevant exchange rate literature the paper examines a number of exogenous determinants of exchange rate variability and the choice of exchange rate regime

energy consumption and economic activities in iran abstract the causal relationship between overall gdp industrial and agricultural value added and consumption of different kinds of energy are investigated using vector error correction model for the case of iran within 1967 2003 a long run unidirectional relationship from gdp to total energy and bidirectional relationship between gdp and gas as well as gdp and petroleum products consumption for the whole economy was discovered causality is running from value added to total energy electricity gas and petroleum products consumption and from gas consumption to value added in industrial sector the long run bidirectional relations hold between value added and total energy electricity and petroleum products consumption in the agricultural sector the short run causality runs from gdp to total energy and petroleum products consumption and also industrial value added to total energy and petroleum products consumption in this sector

dynamics between energy output openness and financial development in sub saharan african countries abstractthis study aims to establish the connection between energy use economic output financial development and trade based on the panel data of 15 sub saharan african ssa countries during the period from 1983 to 2010 one full main panel and two subpanels were created by incorporating low income and middle income countries the panel cointegration test results indicate a long run relationship between the variables the mean group mg estimators show that energy consumption financial development capital and international trade have significant impacts on economic output in the case of middle income countries the granger causality analysis reveals that rising economic output leads to higher energy consumption but this is not true vice versa this means that energy conservation measures are unlikely to have adverse impacts upon economic output on the other hand there is a complementary relationship between financial development and energy consumption in this case energy conservation measures

a medium term framework for analyzing the real exchange rate with applications to the philippines and tanzania a competitive official real exchange rate is important to external balance and sustainable medium term growth in developing countries this article presents a methodology for estimating appropriate real rate and provides a basis for evaluating the extent to which the prevailing rate is misaligned in particular the medium term equilibrium real exchange rate is evaluated by estimating the effects of structural factors on the trend observed for a country s real rate compared with the rates of its major trading partners taking into account the effects of macroeconomic policy structural factors include terms of trade external capital flows and trade policy plus other factors relevant to the circumstance of individual countries the implied change in the medium term equilibrium real rate is compared with that of a historical reference period the application of this methodology to two developing countries the philippines and tanzania illustrates how it can complement and improve upon other analytic approaches such as those using purchasing power parity and analysis of parallel rates this approach is complemented by an analysis of the relation between a country s real exchange rate and those of its major competitors

financial development and the instability of open economies this paper introduces a framework for analyzing the role of financial factors as a source of instability in small open economies our basic model is a dynamic open economy model with a tradeable good produced with capital and a country specific factor we also assume that firms face credit constraints with the constraint being tighter at a lower level of financial development a basic implication of this model is that economies at an intermediate level of financial development are more unstable than either very developed or very underdeveloped economies this is true both in the sense that temporary shocks have large and persistent effects and also in the sense that these economies can exhibit cycles thus countries that are going through a phase of financial development may become more unstable in the short run similarly full capital account liberalization may destabilize the economy in economies at an intermediate level of financial development phases of growth with capital inflows are followed by collapse with capital outflows on the other hand foreign direct investment does not destabilize

currency devaluation aggregate output and the long run an empirical study abstract this paper estimates the effect of currency devaluation on the aggregate output level in six asian countries using a unique methodology developed by wickens et al 1988 economic journal 189 205 the estimated results suggest that devaluation in general is neutral in the long run in some cases it even can have a contractionary effect

disequilibrium exchange rates as industrialization policy abstract this paper deals with a long standing puzzle why are developing countries so reluctant to change their exchange rates when their currencies have become blatantly overvalued the argument developed here is the following under circumstances that are fairly common to real economies a policy which deliberately maintains the exchange rate at a disequilibrium level can be welfare increasing by promoting structural change this can come via the presence of a systematic link between the real exchange rate and the manufacturing sector s terms of trade vis a vis agriculture the paper considers a model in which there exists a relationship between these two due to technological factors using a two period two sector general equilibrium model it demonstrates that such a link provides authorities with a tool which can be manipulated to bring about industrial growth and increase welfare in the presence of unrealized learning by doing effects

causality between trade openness and energy consumption what causes what in high middle and low income countries abstract this paper explores the relationship between trade openness and energy consumption using data of 91 high middle and low income countries the study covers the period of 1980 2010 we have applied panel cointegration to examine long run relationship between the variables the direction of causal relationship between trade openness is investigated by applying homogenous non causality homogenous causality and heterogeneous causality tests our variables are integrated at i 1 confirmed by time series and panel unit root tests and cointegration is found between trade openness and energy consumption the relationship between trade openness and energy consumption is inverted u shaped in high income countries but u shaped in middle and low income countries the homogenous and non homogenous causality analysis reveals the bidirectional causality between trade openness and energy consumption this paper opens up new insights for policy makers to design a comprehensive economic trade and policies for sustainable economic growth in long run following heterogeneous causality findings

is energy consumption sensitive to foreign capital inflows and currency devaluation in pakistan this study investigates the relationship between foreign capital inflows and energy consumption by incorporating economic growth exports and currency devaluation in energy demand function for the

financial instability in latin america in this paper i deal with a number of issues related to financial instability in latin america i first discuss from a macroeconomic research perspective what i believe are some of the most important policy issues faced by the latin american nations these include the effectiveness of controls on capital inflows the effect of exchange rate depreciation on output and the international transmission of the business cycle second i argue that the economic research agenda on latin america should not ignore history in latin america more so than in any other region in the world there has been a self destructing tendency for repeating history 2003 elsevier ltd all rights reserved

electricity consumption growth nexus the case of malaysia abstract the goal of this paper is to model the relationship between electricity consumption and real gross domestic product gdp for malaysia in a bivariate and multivariate framework we use time series data for the period 1971 2003 and apply the bounds testing approach to search for a long run relationship our results reveal that electricity consumption real gdp and price share a long run relationship the results of the autoregressive distributed lag ardl estimates of long run elasticity of electricity consumption on gdp are found to be around 0 7 and statistically significant finally in the short run the results of the causality test show that there is a unidirectional causal flow from electricity consumption to economic growth in malaysia from these findings we conclude that malaysia is an energy dependent country leading us to draw some policy implications this paper adds support and validity thus reducing the policy makers concern on the ambiguity of the electricity and growth nexus in malaysia

structural breaks energy consumption and economic growth revisited evidence from taiwan abstract this paper studies the stability between energy consumption and gdp for taiwan during 1954 2003 we use aggregate as well as various disaggregate data of energy consumption including coal oil gas and electricity to employ the unit root tests and the cointegration tests allowing for structural breaks our main findings are first though gas consumption seems to have structural breaks in the 1960s after considering the structural breaks the series is a stationary variable when taiwan adopted its expansionary export trade policy second we find that different directions of causality exist between gdp and various kinds of energy consumption the empirical result shows unanimously in the long run that energy acts as an engine of economic growth and that energy conservation may harm economic growth third the cointegration between energy consumption and gdp is unstable and some economic events may affect the stability overall we do find the structural breakpoints and they look to match clearly with the corresponding critical economic incidents

fiscal policies and the choice of exchange rate regime a common argument against either a monetary union or a regime or a fixed exchange rates is that they preclude flexible use of the inflation tax the authors address this point of view by comparing three alternative exchange rate regimes a pure float an ems regime in which the exchange rate is fixed but can be realigned and a monetary union the authors model the three regimes as alternative commitments on future seigniorage policies this approac h suggests that it is not possible to pareto rank the three regimes o n the other hand the authors provide intuitive conditions under which each of the systems is superior to the others copyright 1993 by royal economic society

former soviet union oil production and gdp decline granger causality and the multi cycle hubbert curve abstract this paper discusses the transition of the former soviet union fsu within the context of a 1987 1996 soviet and fsu oil production decline the conventional explanation of the break up is that economic inefficiencies and the cold war defense build up caused it another possible explanation one that is examined at length here is that declining oil production was a contributing factor the econometric analysis suggests that the fall in soviet and former soviet gdp in the 1980s and 1990s did not granger cause the decline in oil production but the decline in oil production did granger cause the fall in gdp coal and natural gas to gdp relationships show alternative granger causalities that we would expect to see with oil but do not a multi cycle hubbert trend that may be used to forecast future fsu oil production is also shown

determinants of global natural gas consumption and import export flows abstract based on the data of the bp statistical review of world energy this paper constructs the consumption and import export of natural gas identities it discusses the drivers of changes in global natural gas consumption and trade flows from 2008 to 2015 using the extended logarithmic mean divisia index the results show that differences in the natural gas supply and demand across countries or regions as well as the distribution of energy between the domestic and international markets can be better explained when natural gas trade movements are considered by comparing the supply and consumption increment of natural gas this study finds that only the energy intensity economic growth and demographic effects are consistent with each other the changes in the impact of other effects mainly depend on storage variations and statistical errors in addition the primary drivers of the incremental changes in natural gas consumption vary in different countries they include production scale import scale export scale consumption structure proportion energy intensity economic growth and population and balance effects finally the consumption competitiveness of the liquefied natural gas significantly improved over the examined period

exchange rate policy options for post crisis southeast asia is there a case for currency baskets following the recent financial crises in southeast asia and elsewhere the perennial issue of the exchange rate policy options for small and open developing countries has resurfaced there seems to be an emerging consensus that the frequency with which soft pegs have been susceptible to speculative attacks in this era of escalating global capital flows has increased pressure for developing countries to adopt corner exchange rate regimes this paper takes issue with this popular one size fits all prescription of exchange rate arrangements for developing countries and explores exchange rate policy options for post crisis southeast asia the principal purpose of this paper is to discuss the case for currency baskets as a general regime in its own right for southeast asia as opposed to being a compromise between the two corner solutions

the relationship between disaggregate energy consumption and industrial production in the united states an ardl approach abstract we re examine the relationship between disaggregate energy consumption and industrial output as well as employment in the united states using the autoregressive distributed lag ardl approach developed by pesaran and pesaran pesaran m h pesaran b 1997 working with microfit 4 0 camfit data ltd cambridge and pesaran shin and smith pesaran m h shin y smith r j 2001 bounds testing approaches to the analysis of level relationships journal of applied econometrics 16 289 326 in particular we focus attention on the following energy consumption variables coal fossil fuels conventional hydroelectric power solar energy wind energy natural gas wood and waste the sample period covers 2001 1 2005 6 our results imply that real output and employment are long run forcing variables for nearly all measures of disaggregate energy consumption

the role of globalization on the recent evolution of energy demand in india implications for sustainable development using annual data for the period 1971 2012 this study explores the relationship between globalization and energy consumption for india by endogenizing economic growth financial development and urbanization the cointegration test proposed by bayer hanck 2013 is applied to estimate the long run and short run relationships among the variables after confirming the existence of cointegration the overall results from the estimation of an ardl energy demand function reveal that in the long run the acceleration of globalization measured in three dimensions economic social and overall globalization leads to a decline in energy demand in india furthermore while financial development is negatively related to energy consumption economic growth and urbanization are the key factors leading to increased energy demand in the long run these results have policy implications for the sustainable development of india in particular globalization and financial development provide a win win situation for india to increase its economic growth in the long run and become more environmentally sustainable

measuring exchange rate misalignment inflation differentials and domestic relative prices abstract empirical studies of exchange rate misalignment generally use crosscountry differences in overall inflation as proxy measures for a country s real exchange rate rer this paper shows that using such differential inflation proxies introduces two systematic biases in model results understatement of rer movements and a spurious trend towards depreciation these biases can be corrected only with disaggregated data on domestic relative prices of tradable and nontradable products using a standard model with disaggregated data for zimbabwe it is found that proxy based results understate misalignment by almost 25 and exaggerate depreciation by 4 per year

separating economic from political influences on government decisions abstract the public interest theory is a poor predictor of government decisions relative to interest group theories but a sophisticated public interest theory is a more serious alternative to the former testing the sophisticated theory s predictions is problematic however when public interest is coincident with an interest group s interests a four step method is developed that disentangles public interest and interest group interests by separating economic from political incentives applying the method to the national forest service decisions about wilderness designations indicates whether interest groups were successful in influencing allocation decisions and whether allocation decisions were in the public interest

democracy and markets the case of exchange rates the relationships between the workings of democratic institutions and currency markets are studied severa competing propositions about how political re equilibration affects currency markets are derived and tested the results support the view that democratic politics affects currency markets expectations and uncertainty about electoral outcomes and government survival affect the probability of switching between currency market equilibria additionally opinion polls about chief executive performance have a direct effect on the probabilities of switches between currency regimes suggesting that these polls cause currency traders to revise their expectations about the stability of governments and or the contents of public policies electoral institutions mitigate the impact of politics on currency market equilibria political effects are weaker in countries with proportional representation electoral systems than in countries with majority plurality systems there is less evidence that central bank independence consensual corporatist systems or political coherency reduces the effect of politics on currency markets he study of democracy and markets is at the heart of political economy understanding how political equilibration and economic equilibration are related is one of the main challenges facing this field the size and nature of currency markets make them especially important cases substantively with globalization currency markets have become important constraints on elected governments reducing their room to maneuver analytically in comparison to most goods markets currency markets are informationally efficient asset markets with distinctive equilibria today s exchange rate is determined by currency traders fully informed expectations about tomorrow s exchange rate the sensitivity of these markets to the arrival of new information therefore makes them particularly well suited for studying the effects of political news and uncertainty on economic equilibration 1 this article demonstrates there are informationally relevant political factors insofar as exchange rate determination is concerned factors that directly affect the transition probabilities between currency market equilibria moreover these factors vary in important ways across democracies some electoral institutions lessen the effects of politics on currency

exchange rate regimes and export performance of developing countries a fter the breakdown of the bretton woods system in 1973 many developing countries moved away from single currency pegging to more flexible exchange rate regimes an extensive literature on the appropriateness of various exchange rate regimes for developing countries economic performance has developed one issue concerns how developing countries choice of exchange rate regime affects their export performance comparative analyses of the impact of various exchange rate regimes on developing countries exports have however been overlooked different exchange rate regimes give rise to different tendencies for exchange rate misalignments and exchange rate volatility there are two reasons why the exports of developing countries may be subject to more severe consequences of exchange rate misalignments and exchange rate volatility than the exports of developed countries first exporters in developing countries may be expected to be more vulnerable to exchange rate misalignments since developing countries exports are often made up of raw material and agricultural products in which exporters usually have little market power it follows that exporters will have to respond to exchange rate misalignments by changing the export quantity rather than the export price second since developing countries usually have underdeveloped financial markets exchange rate volatility may be more harmful

energy use and output growth in canada a multivariate cointegration analysis using a neo classical one sector aggregate production technology where capital labor and energy are treated as separate inputs this paper develops a vector error correction vec model to test for the existence and direction of causality between output growth and energy use in canada using the johansen cointegration technique the empirical findings indicate that the long run movements of output labor capital and energy use in canada are related by two cointegrating vectors then using a vec specification the short run dynamics of the variables indicate that granger causality is running in both directions between output growth and energy use hence an important policy implication of the analysis is that energy can be considered as a limiting factor to output growth in canada

the dynamic links between energy consumption economic growth financial development and trade in china fresh evidence from multivariate framework analysis abstract this study investigates the relationship between energy use and economic growth by incorporating financial development international trade and capital as important factors of production function in case of china over the period of 1971 2011 the ardl bounds testing approach to cointegration was applied to examine long run relationship among the series while stationarity properties of the variables was tested by applying structural break test our empirical evidence confirmed long run relationship among the variables the results showed that energy use financial development capital exports imports and international trade have positive impact on economic growth the granger causality analysis revealed that unidirectional causal relationship running from energy use to economic growth financial development and energy use granger cause each other there is bidirectional causality between international trade and energy use the feedback relation exists between financial development and international trade there is also bidirectional causality exists between capital and energy demand financial development and economic growth and international trade and economic growth this paper makes significant contribution in energy economics and opens up new direction for policy makers to explore new and alternative sources of energy which would be helpful in meeting the rising demand of energy due to sustained rate of economic growth

the saving and investment nexus for china evidence from cointegration tests the saving and investment nexus as postulated by feldstein and horioka fh 1980 is revisited the saving investment correlation for china is estimated over the periods 1952 1998 and 1952 1994 the latter culminating in a period of fixed exchange rate regime amongst the key results it is found that saving and investment are correlated for china for both the period of the fixed exchange rate and the entire sample period with high saving investment correlation the results suggest that the chinese economy is in conformity with the fh hypothesis this is a valid outcome for in china capital mobility was fairly restricted over the 1952 1994 period as indicated by the relatively low foreign direct investment