Financial Development and Economic Growth: The Role of Energy Consumption
Journal Title: Journal of Quantitative Methods (JQM) - Year 2018, Vol 2, Issue 2
Abstract
The study investigates financial development and economic growth nexus, incorporating use of energy resources for Pakistan for 1980- 2016, using Johansen co-integration and granger causality approach. The results of Johansen test for co-integration show the link between financial development, energy and economic growth in the long time span. The findings of granger causation test uncovered a two-way causality between capital and economic growth. The one-way causality exists from economic growth in energy and financial development. The findings also exposed the one-way causality from capital formation and exports to use of energy. The government should take steps to make financial sectors stronger as it has a great role in increasing the growth of an economy.
Authors and Affiliations
Hafiz Muhammad Abubakar Siddique, Sadaf Usman, Junaid Ishaq
Keywords
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- EP ID EP546527
- DOI 10.29145/2018/jqm/020204
- Views 271
- Downloads 0
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