Sectoral Growth and Energy Consumption in South and Southeast Asian Countries: Evidence from a Panel Data Approach
Journal Title: Review of Economics & Finance - Year 2017, Vol 10, Issue 4
Abstract
This study examines the dynamic relationship between energy consumption and the three major sectoral outputs (agricultural, manufacturing and service) in thirteen South and Southeast Asian countries using a panel data framework for the period 1971–2012. It undertakes panel cointegration analysis to investigate the long-run relationship between the variables. Also, the panel vector error correction model (PVECM) and impulse response functions (IRFs) are employed to examine the short- and long-run direction of causality and the effect of responses between energy consumption and the three sectoral outputs. The empirical results reveal that the long-run equilibrium relationship between energy consumption and the three sectoral outputs is positive and statistically significant, indicating the existence of long-run co-movement among the variables. The short- and long-run causality results support the existence of bidirectional causality between energy consumption and the three sectoral outputs except for the short-run causality between energy consumption and service sector output, which is unidirectional, running from service sector output to energy consumption. The IRFs show that all variables reach the equilibrium level within three to seven years from the initial shock.
Authors and Affiliations
Anthony Rezitis, Shaikh Mostak Ahammad
Keywords
Related Articles
- EP ID EP258228
- DOI -
- Views 113
- Downloads 0
Combining the Beveridge and the Phillips Curve into an Integrative Model: The Modified Output Gap
We present a new theoretical concept: modified output gap (MOG), based on the Phillips and on the Beveridge curve. Both of these pillars are derived analytically and combined with each other, revealing the explicit posit...
A Mixtured Localized Likelihood Method for GARCH Models with Multiple Change-points
This paper discusses GARCH models with multiple change-points and proposes a mixture localized likelihood method to estimate the piecewise constant GARCH parameters. The proposed method is statistically and computational...
Asymmetric Effects on Financial Cycles in a Monetary Union with Diverging Country Preferences for Variable- and Fixed-Rate Mortgages
Before as well as at the time when the European Monetary Union (EMU) was launched, a number of economists were discussing possible asymmetrical effects of monetary transmission stemming from apparent structural differenc...
Financial Crisis Transmission: Foreign Ownership vs. Foreign Funding?
We investigate whether the credit contraction that followed the global financial crisis is due to high foreign bank ownership or high reliance of banks on foreign funding. We apply panel vector auto-regressions to quarte...
Digital Divide and Income Inequality: A Spatial Analysis
A spatial quantile regression model, which can fully describe the distribution characteristics and spillover effects, is applied to explore the effect of digital divide on the income inequality. Firstly, the estimation r...