Financial development, energy consumption, and economic growth: Some recent evidence for India

Raghutla, Chandrashekar; Chittedi, Krishna Reddy

doi:10.1002/bsd2.111

Cited by 15 publications

(7 citation statements)

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“…In the available literature, the link between financial development, energy consumption, trade openness, and economic growth has been widely tested by many (Belloumi and Alshehry 2020;Le 2020;Raghutla and Chittedi 2020). However, few studies considered industrialization among the factors that influence economic growth (Iheoma and Jelilov 2017;Ndiaya and Lv 2018;Opoku and Yan 2019;Saba and Ngepah 2021;Wonyra 2018).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Findings indicate that energy consump-tion, financial development, and trade openness have a positive significant impact on economic growth. Using the vector error correction model (VECM), Raghutla and Chittedi (2020) found a bidirectional relationship between energy consumption and economic growth in India for the period 1970. Over the period 1984, Elfaki et al (2018 used the ARDL model and investigated the link between energy consumption, economic growth, and trade openness in Sudan.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Many studies have examined the links between economic growth and its determinants. For instance, Raghutla and Chittedi (2020) examined the causal links between trade openness, financial development, energy consumption, and economic growth in India. By applying the autoregressive distributed lag (ARDL), Belloumi and Alshehry (2020) also investigated the link between trade openness, economic growth, energy consumption, and financial development in Saudi Arabia over the period 1971-2016.…”

Section: Introductionmentioning

confidence: 99%

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The Impact of Industrialization, Trade Openness, Financial Development, and Energy Consumption on Economic Growth in Indonesia

2021

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This study aimed to scrutinize the impact of financial development, energy consumption, industrialization, and trade openness on economic growth in Indonesia over the period 1984–2018. To do so, the study employed the autoregressive distributed lag (ARDL) model to estimate the long-run and short-run nexus among the variables. Furthermore, fully modified ordinary least squares (FMOLS), dynamic least squares (DOLS), and canonical cointegrating regression (CCR) were used for a more robust examination of the empirical findings. The result of cointegration confirms the presence of cointegration among the variables. Findings from the ARDL indicate that industrialization, energy consumption, and financial development (measured by domestic credit) positively influence economic growth in the long run. However, financial development (measured by money supply) and trade openness demonstrate a negative effect on economic growth. The positive nexus among industrialization, financial development, energy consumption, and economic growth explains that these variables were stimulating growth in Indonesia. The error correction term indicates a 68% annual adjustment from any deviation in the previous period’s long-run equilibrium economic growth. These findings provide a strong testimony that industrialization and financial development are key to sustained long-run economic growth in Indonesia.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The Impact of Industrialization, Trade Openness, Financial Development, and Energy Consumption on Economic Growth in Indonesia

2021

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“…The reciprocal association between GDP and EC supports the feedback hypothesis. Mallick (2009), Behera (2015), and Raghutla and Chittedi (2020) supported the bidirectional causality. Tiwari (2011) and Sebri and Ben-Salha (2014) supported the neutrality hypothesis.…”

Section: Yearmentioning

confidence: 91%

“…However, there is a need for alternatives in technology and policy implications to control carbon dioxide emissions and provide electricity to required sectors without any hindrances.This article looks into the association between energy usage, carbon dioxide emissions, and India's economic growth, considering recent phenomena and the vital role of energy in economic growth. Consequently, in earlier studies, researchers have only focused on the domestic capital, labour force, and financial development while examining growth's influence (e.g., Cheng, 1999;Wolde-Rufael, 2010;Shahbaz et al, 2017;Raghutla and Chittedi, 2020). This research gap motivates the researchers to frame the research question to accomplish the current study's objective.…”

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confidence: 99%

Do energy consumption and carbon emissions impact economic growth? New insights from India using ARDL approach

Singh

Kaur

2022

OPEC Energy Review

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This paper investigates the association among energy consumption, carbon-dioxide emission, and India's economic growth along with supplemental variables including foreign direct investment, population density, inflation, and agricultural land. An autoregressive distributive lag model is applied over annual time-series data from 1985 to 2019. Further, the robustness and novelty of the model are confirmed by applying fully modified ordinary-least-square, dynamic ordinary-leastsquare, canonical co-integrating regression, variance decomposition, and impulse response function. The analysis results indicate that a cointegration association exists among variables. In the short run, the profound determinants of economic development are energy consumption, carbon-dioxide emission, inflation, and agricultural land. In the long run, both inflation and agricultural land significantly negatively influence economic growth while carbon emission drives a positive impact. Interestingly, a one-way Granger causality runs from economic growth towards energy consumption, carbon emission, and agricultural land. The new research presents a comprehensive understanding of economic growth indicators, aiding policymakers, and advancing existing literature. Consequently, as a recommendation, the policymakers should constitute explicit goals for renewable energy consumption to stimulate sustainable economic growth with carbon emission reduction. Apergis and Payne, 2010). These are also the fundamental components that enable people to overcome poverty and ensure a good lifestyle.In India, energy consumption increases every day because incomes are rising, and the population is also growing faster. India stands at the second number after the Republic of China in the world's most populated nations. Thermal power plants are the major source of fulfilling the growing energy demand of India. As per the report of the Central Electricity Authority, India (2021), 61.4 per cent of the power is generated by thermal plants, followed by renewable energy sources (24.6 per cent), hydro (12.2 per cent), and nuclear (1.8 per cent). The thermal power plants use coal, gas, lignite, and diesel sources for power generation. There is a need for regular and reliable electricity to meet the growing demand of different consumer categories, that is, residential, industrial, commercial, agricultural, and traction. These consumer categories contribute significantly to the country's economic growth (Altinay and Karagol, 2005;Mozumder and Marathe, 2007). A Nation has to bear the heavy cost of any constraint in electricity supply to different consumer categories. The significant consequences can be the sluggish economic growth, low credibility and confidence among potential investors, low productivity by agriculture and industrial sectors, lower exports, and higher dependence on imports (Shiu and Lam, 2004;Yoo, 2005). Therefore, a proper power supply is required for the growing economic growth of the nation.More dependence is on coal, gas, lignite, and diesel sources to pr...

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Do the vegetable exports lead to economic growth? An empirical evidence in selected SAARC economies

Kondal

2020

J Public Affairs

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The present study examines whether the vegetable exports lead to economic growth or not; and analyze the relationship between the vegetables exports and vegetables imports, capital and economic growth in selected SAARC economies for a period of 1988-2018. Present study employed panel econometric techniques; such as LLC, IPS, Johansen-Fisher Coinetegration, Fully Modified Ordinary Least Square, heterogeneous causality to draw the empirical inferences. The present study confirmed that vegetables exports do not lead the economic growth in selected SAARC economies and rejected the Export led growth hypothesis. However, there is a long run relationship exists between the vegetables exports, vegetables imports, capital and economic growth in selected SAARC economies. The study suggested that policy makers to reframe the trade policies with respect to vegetables exports, and especially reduce the trade restriction for the SAARC nations. These policy suggestions not only helpful to improve the exports growth in the long run but also improve basic infrastructure facilities through diversifying their capital/investment.

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Financial development, energy consumption, and economic growth: Some recent evidence for India

Cited by 15 publications

References 105 publications

The Impact of Industrialization, Trade Openness, Financial Development, and Energy Consumption on Economic Growth in Indonesia

The Impact of Industrialization, Trade Openness, Financial Development, and Energy Consumption on Economic Growth in Indonesia

Do energy consumption and carbon emissions impact economic growth? New insights from India using ARDL approach

Do the vegetable exports lead to economic growth? An empirical evidence in selected SAARC economies

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