Energy consumption and growth: New evidence from a non-linear panel and a sample of developing countries

Tolga Omay; Nicholas Apergis; Hulya Özcelebi

doi:10.1142/S0217590815500186

Energy consumption and growth: New evidence from a non-linear panel and a sample of developing countries

Tolga Omay, Nicholas Apergis, Hulya Özcelebi

Research output: Contribution to journal › Article › peer-review

9 Citations (Scopus)

Abstract

This paper investigates the relationship between economic growth and energy consumption through non-linear causality tests. Eight developing countries from Europe and Central Asia spanning the period 1993 to 2008 are selected for the purpose of panel empirical analysis. Panel unit root and panel cointegration tests with and without considering cross section dependency (CD) problems are implemented. Next, linear panel cointegration tests are employed and, finally, a two-regime Dynamic Panel Smooth Transition Vector Error Correction (PSTRVEC) model is estimated for testing the presence of non-linear short- and long-run causality. To this end, a new estimator, called the Dynamic Non-linear Pooled Common Correlated Effect Estimator (DNPCCEE) is proposed. The empirical findings indicate that short and long-run causalities are regime-dependent.

Original language	English
Pages (from-to)	1550018
Journal	The Singapore Economic Review
Volume	60
Issue number	02
DOIs	https://doi.org/10.1142/S0217590815500186
Publication status	Published - Jun 2015

Keywords

Energy consumption
growth
non-linear panel cointegration and panel vector error correction
cross section dependency
developing countries

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1142/S0217590815500186

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abstract = "This paper investigates the relationship between economic growth and energy consumption through non-linear causality tests. Eight developing countries from Europe and Central Asia spanning the period 1993 to 2008 are selected for the purpose of panel empirical analysis. Panel unit root and panel cointegration tests with and without considering cross section dependency (CD) problems are implemented. Next, linear panel cointegration tests are employed and, finally, a two-regime Dynamic Panel Smooth Transition Vector Error Correction (PSTRVEC) model is estimated for testing the presence of non-linear short- and long-run causality. To this end, a new estimator, called the Dynamic Non-linear Pooled Common Correlated Effect Estimator (DNPCCEE) is proposed. The empirical findings indicate that short and long-run causalities are regime-dependent.",

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AU - Apergis, Nicholas

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N2 - This paper investigates the relationship between economic growth and energy consumption through non-linear causality tests. Eight developing countries from Europe and Central Asia spanning the period 1993 to 2008 are selected for the purpose of panel empirical analysis. Panel unit root and panel cointegration tests with and without considering cross section dependency (CD) problems are implemented. Next, linear panel cointegration tests are employed and, finally, a two-regime Dynamic Panel Smooth Transition Vector Error Correction (PSTRVEC) model is estimated for testing the presence of non-linear short- and long-run causality. To this end, a new estimator, called the Dynamic Non-linear Pooled Common Correlated Effect Estimator (DNPCCEE) is proposed. The empirical findings indicate that short and long-run causalities are regime-dependent.

AB - This paper investigates the relationship between economic growth and energy consumption through non-linear causality tests. Eight developing countries from Europe and Central Asia spanning the period 1993 to 2008 are selected for the purpose of panel empirical analysis. Panel unit root and panel cointegration tests with and without considering cross section dependency (CD) problems are implemented. Next, linear panel cointegration tests are employed and, finally, a two-regime Dynamic Panel Smooth Transition Vector Error Correction (PSTRVEC) model is estimated for testing the presence of non-linear short- and long-run causality. To this end, a new estimator, called the Dynamic Non-linear Pooled Common Correlated Effect Estimator (DNPCCEE) is proposed. The empirical findings indicate that short and long-run causalities are regime-dependent.

KW - Energy consumption

KW - growth

KW - non-linear panel cointegration and panel vector error correction

KW - cross section dependency

KW - developing countries

U2 - 10.1142/S0217590815500186

DO - 10.1142/S0217590815500186

M3 - Article

SN - 0217-5908

SN - 1793-6837

VL - 60

SP - 1550018

JO - The Singapore Economic Review

JF - The Singapore Economic Review

IS - 02

ER -

Energy consumption and growth: New evidence from a non-linear panel and a sample of developing countries

Abstract

Keywords

UN SDGs

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