Energy consumption–economic growth nexus within the purview of exogenous and endogenous dynamics: evidence from Bangladesh

Abstract

This paper investigates the nexus between energy consumption and economic growth in Bangladesh over the period 1971–2018 using the autoregressive distributed lag (ARDL) approach to cointegration. The main contribution of this study is the inclusion of exogenous dynamic (globalisation) and endogenous factor (political risk indicator measured by political terror scale (PTS)) to the energy consumption–economic growth nexus. The study explores an energy consumption–economic growth nexus where globalisation and PTS have both positive and negative influences on this relationship in the short run and long run. The Toda–Yamamoto Granger causality test confirms the feedback hypothesis, that is bidirectional causal relationship between energy consumption and economic growth, and the result is further verified by the impulse response function. Therefore, policymakers should enhance the availability of energy for people and industries to continue the existing momentum of economic growth. Besides, the government should cautiously deal with both the globalisation and political risk issues about energy consumption–economic growth nexus in Bangladesh.

Creative social media use for Covid-19 prevention in Bangladesh: a structural equation modeling approach

“…Bangladesh as a developing country with its inhabitants of 165 million (Islam and Islam 2021) has witnessed a total of 509,148 Covid-19 confirmed cases where 451,961 (88.8%) patients recovered, 7,452 (1.46%) died and 49,735 (9.77%) were found as active cases as of 27th December 2020 (WHO 2021). The first Covid-19 case in Bangladesh was detected on March 8, 2020 (Worldometer 2020).…”

Investigating the causal linkage among economic growth and renewable and non‐renewable energy consumption: cases of Germany, the UK and France

“…The multi-country studies comprise Isik et al (2018) for Spanish, Italian, Turkish and USA economies and Koc ¸ak and S ¸arkgünes ¸i (2017) for Balkan and Black Sea countries. Otherwise, the feedback hypothesis is also concluded in some studies in total energy consumption context, such as Islam and Islam (2021) for Bangladesh, Aboagye (2017) for Ghana, and Ilesanmi and Tewari (2017) for South Africa.…”

Assessment of Export-Led Growth Hypothesis: The Case of Bangladesh, China, India and Myanmar

“…Ultimately, the institutional quality largely depends on how a country controls the level of terrorism done by the different separatist forces. Sometimes, a state's coercive measure against people becomes part of terror practice (Islam, Islam, 2021). Therefore, the terror practice-laden volatile situation constrains the production process and GDP growth.…”