Published
2021-09-02
Issue
Section
Articles
How to Cite
Energy – Growth Nexus- A Case of South Asian Countries
Saddam Hussain
Department of International Economics & Trade, Business School, Hubei University, Wuhan, P.R. China.
https://orcid.org/0000-0001-6078-3164
Chunjiao Yu
Open Economy Research Centre, Business School, Hubei University, Wuhan, P.R. China.
https://orcid.org/0000-0002-4979-3844
Liu Wan
Department of International Economics & Trade, Business School, Hubei University, Wuhan, P.R. China.
https://orcid.org/0000-0002-9171-4433
DOI: https://doi.org/10.20448/journal.501.2021.82.58.66
Keywords: Energy consumption, Population, CPI, FDI, GDP, Panel data models.
Abstract
The relationship between energy consumption and economic growth is a hot issue in today's society. This paper aims to empirically verify the relationship between energy consumption and economic growth. This article analyzes the relation of energy consumption with the economic growth taking the case of South Asian countries (Afghanistan, Bangladesh, Bhutan, India, Pakistan, Sri Lanka, and Nepal) along with the macroeconomic determinants that affect the total economic growth – FDI growth, CPI rate and population growth in order to avoid omitted variable bias and misleading results. The time span of this study covers the period of 1980–2019. To examine the significant relation of these determinants and impact of energy consumption on economic growth, In-pooled regression, Fixed-effects, Bidirectional fixed effect, Random-effects, and GLS estimation regression model are used. The estimated results show a positive correlation of energy consumption and all other economic determinants with economic growth except CPI, where there is a negative correlation founded.