The linkages among energy consumption, economic growth, relative price, foreign direct investment, and financial development in Malaysia

Tang, Chor Foon; Tan, Bee Wah

doi:10.1007/s11135-012-9802-4

Cited by 210 publications

(125 citation statements)

References 41 publications

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“…Second, CO2 emissions have a positive and statistically significant European and Asia, and for the Latin American and Caribbean region. Our results are in line with the findings of Dan and Lijun (2009);Karanfil (2009); and Tang and Tan (2012). Moreover, capital has a positive and statistically significant effect on energy consumption only for global panels.…”

Section: Main Results and Discussionsupporting

confidence: 92%

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2017

International Journal of Sustainable Energy and Environmental R

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Article HistoryThe relationship among CO2 emission, Economic Growth and Energy Consumption were examine in this study. This study specifically examines the combine impact CO2 emission, and Economic Growth on Energy Consumption. The study uses a dynamic panel data of esteem the time series analysis on 1980. Our result shows that Economic Growth is positively related to Energy Consumption. But when CO2 emission is interacted with Economic Growth the combine impact is increasing in energy consumption. The study therefore recommend that appropriate policy should formulated by the government to drive up energy consumption.Contribution/ Originality: The paper contributes the first logical analysis in the existing literature of the relationship between Co2 emission, economic growth and energy consumption. The study departs from other studies by examining the combined impact of Co2 emission and economic growth on energy consumption in SubSaharan African countries during the period of the study. There is also robust use of system GMM developed by Arellano and Bond (1991) which gave consistent and efficient estimates.

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Section: Main Results and Discussionsupporting

confidence: 92%

Untitled

2017

International Journal of Sustainable Energy and Environmental R

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“…Shahbaz et al (2013) showed that, in China, financial development stimulates economic growth, which increases energy use. Tang and Tan (2014) indicated that energy consumption causes financial development in Malaysia, although the feedback effect exists between energy consumption and economic growth. Altay and Topçu (2015) showed no significant relationship between financial development and energy consumption in Turkey.…”

Section: Financial Development and Energy Consumption In Other Countriesmentioning

confidence: 99%

Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis

et al. 2017

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This paper investigates the asymmetric relationship between energy consumption and economic growth by incorporating financial development, capital and labour into a production function covering the Indian economy from 1960Q 1 -2015Q 4 . The nonlinear autoregressive distributed lag bounds testing approach is applied to examine the asymmetric cointegration between the variables. An asymmetric causality test is also employed to examine the causal association between the considered variables. The results indicate cointegration between the variables in the presence of asymmetries. The asymmetric causality results show that only negative shocks in energy consumption have impacts on economic growth. In the same vein, only negative shocks in financial development have impacts on economic growth. By contrast, symmetrically, capital formation causes economic growth. Finally, over the study period, a neutral effect exists between the labour force and economic growth in India. The implications of these results for growth policies in India are also discussed.Keywords: Financial Development, Energy, Growth, India, Asymmetries JEL classification: O13 Acknowledgements: We would like to thank the editor, Professor Richard Tol (University of Sussex, Brighton, UK), as well as the three anonymous reviewers, for their valuable comments and suggestions that helped us improve our paper significantly. We also thank the participants at the 7 th International Research Meeting in Business and Management (IPAG, Nice, France, 11-12 July 2016). We are also grateful to Jawad Kazmi for his technical assistance. The authors' are responsible for any remaining errors or shortcomings. IntroductionThis study uses quarterly data to investigate the relationship between energy consumption and economic growth in India over the 1960-2015 period. Financial development (measured by domestic credit to the private sector), 1 capital formation and labour force 2 are also included in the Cobb-Douglas production function. This study's main contribution to the existing literature on the energy-growth nexus concerns its examination of the potential asymmetric relationship between the variables. Taking this asymmetry into account is important because a positive or negative variation on one variable does not have the same impact on the other variable. The existence of an asymmetric relationship between two variables can be caused by numerous factors, one of which concerns the complexity of economic systems and the mechanisms that generate the variables under study. This complexity may induce various channels through which one variable affects another. In our case, the relationship between energy consumption and economic growth has been found to be very complex because previous studies have shown four possible impact channels: the growth, conservative, feedback and neutrality hypotheses. 3 On the one hand, the relationship between energy consumption and financial development can also be very complex because numerous impact channels can exist between them...

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“…Similarly, Shahbaz and Lean [88] examined energy demand for Tunisia and reported results showing that financial development increases energy demand resulting from economic growth. In the case of Malaysia, Tang and Tan [89] examined the relationship between financial development and energy consumption by incorporating relative prices and foreign direct investment (FDI) in energy demand function. They report bidirectional causality between financial development and energy consumption both in the short and the long runs.…”

Section: Financial Development and Energymentioning

confidence: 99%

The Links between Energy Consumption, Financial Development, and Economic Growth in Lebanon: Evidence from Cointegration with Unknown Structural Breaks

Abosedra

Shahbaz

Sbia³

2015

Journal of Energy

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We investigate the relation between financial development, energy consumption, and economic growth in the economy of Lebanon over the period 2000M 2 -2010M 12 . Our findings confirm the existence of cointegration among the variables. The results indicate that financial development and energy consumption contribute to economic growth in Lebanon. The impact of energy consumption on economic growth is positive showing the significance of energy as a main stimulant of economic growth. Financial development is also found to play a vital role in enhancing economic growth. Financial development and economic growth also result in further increase in energy consumption. We offer some policy implications specific to Lebanon considering the recent discovery of large oil and gas reserves in the country and the historical importance of its banking sector which remains a center of Lebanon's serviceoriented economy.

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The linkages among energy consumption, economic growth, relative price, foreign direct investment, and financial development in Malaysia

Cited by 210 publications

References 41 publications

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Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis

The Links between Energy Consumption, Financial Development, and Economic Growth in Lebanon: Evidence from Cointegration with Unknown Structural Breaks

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