CAUSALITY BETWEEN OIL CONSUMPTION AND ECONOMIC GROWTH IN IRAN: AN ARDL TESTING APPROACH
Journal Title: Asian Economic and Financial Review - Year 2012, Vol 2, Issue 6
Abstract
Oil is also very important for the Iran’s economic growth. This paper studies the causal relationships between oil consumption and economic growth for Iran using cointegration and error correction model from annual data covering the period of 1980-2010. As economic growth and oil consumption variables used in empirical analysis was integrated of order one, employed Granger causality test. The results show that in the short-run, the Granger causality runs from economic growth to energy consumption In Iran. However, in the long run there is not any Granger causality relationship for this country. In other words, if unidirectional causality runs from energy consumption to income, reducing energy consumption could lead to a fall in economic growth.
Authors and Affiliations
Gudarzi farahani, Yazdan| M.A student in Economics, Faculty of Economics, University of Tehran E-mail: yazdan.farahani@gmail.com, Sadr Seyed Mohammad Hossein| Ph.D student in Management Information Technology, Department of Management and accounting, University of Allame Tabataba'I (ATU) E-mail: sadr.mba@gmail.com
Keywords
Related Articles
- EP ID EP1818
- DOI -
- Views 545
- Downloads 42
THE LONG RUN AND SHORT RUN IMPACTS OF FOREIGN DIRECT INVESTMENT AND EXPORT ON ECONOMIC GROWTH OF VIETNAM
The determinants of economic growth have always been an important issue in economic research. This paper aims to study the short run and long run impact of foreign direct investment (FDI) and export on economic growth of...
OPTIMAL TAX POLICY – FINANCIAL CRISIS OVERCOMING FACTOR
Among economic reforms implemented for overcoming of world financial and economic recessions the special accent is brought to macroeconomic stabilization; strengthening of financial sphere is recognized one of imperative...
SAUDI ARABIAN COMMERCIAL BANKS’ MARKET-RISK SENSITIVITY: A VIEW THROUGH ROLLING SUB- SAMPLES
Using data collected from the Saudi Arabian TadawulStock Exchange, this paper analyses 11 publically listed bank risk-return relationships during 2008-2011. The contribution of this paper provides a more refined techniq...
ZAKAH AS AN ISLAMIC MICRO-FINANCING MECHANISM TO PRODUCTIVE ZAKAH RECIPIENTS
There are various forms of zakah distribution practiced by the zakah institutions. One of them is the distribution of zakah in a form of business capital given to productive zakah recipients. This form of zakah distrib...
THE EFFECT OF CORPORATE GOVERNANCE ON FIRM PERFORMANCE, EVIDENCE FROM EGYPT
Corporate governance is well thought-out to have major implications for the growth prediction of an economy. Fine corporate governance practices are viewed as important in decreasing risk for investors; catch the attenti...