Search Result

Srl

Item

ID: 093470

Bounds test approach to cointegration and causality between nuc / Wolde-Rufael, Yemane

Wolde-Rufael, Yemane	Journal Article
	0 Rating(s) & 0 Review(s)

Publication

2010.

Summary/Abstract

This paper attempts to examine the dynamic relationship between economic growth, nuclear energy consumption, labor and capital for India for the period 1969-2006. Applying the bounds test approach to cointegration developed by Pesaran et al. (2001)we find that there was a short- and a long-run relationship between nuclear energy consumption and economic growth. Using four long-run estimators we also found that nuclear energy consumption has a positive and a statistically significant impact on India's economic growth. Further, applying the Toda and Yamamoto (1995)approach to Granger causality and the variance decomposition approach developed by Pesaran and Shin (1998) we found a positive and a significant uni-directional causality running from nuclear energy consumption to economic growth without feedback. This implies that economic growth in India is dependent on nuclear energy consumption where a decrease in nuclear energy consumption may lead to a decrease in real income. For a fast growing energy-dependent economy this may have far-reaching implications for economic growth. India's economic growth can be frustrated if energy conservation measures are undertaken without due regard to the negative impact they have on economic growth.

Key Words

Causality ; Nuclear Energy Consumption ; Bounds Test

In Basket

Export

ID: 109700

Nuclear energy consumption and economic growth in OECD countrie: cross-sectionally dependent heterogeneous panel causality analysis / Nazlioglu, Saban; Lebe, Fuat; Kayhan, Selim

Nazlioglu, Saban	Journal Article
	0 Rating(s) & 0 Review(s)

Publication

2011.

Summary/Abstract

The purpose of this study is to determine the direction causality between nuclear energy consumption and economic growth in OECD countries. The empirical model that includes capital and labor force as the control variables is estimated for the panel of fourteen OECD countries during the period 1980-2007. Apart from the previous studies in the nuclear energy consumption and economic growth relationship, this study utilizes the novel panel causality approach, which allows both cross-sectional dependency and heterogeneity across countries. The findings show that there is no causality between nuclear energy consumption and economic growth in eleven out of fourteen cases, supporting the neutrality hypothesis. As a sensitivity analysis, we also conduct Toda-Yamamoto time series causality method and find out that the results from the panel causality analysis are slightly different than those from the time-series causality analysis. Thereby, we can conclude that the choice of statistical tools in analyzing the nature of causality between nuclear energy consumption and economic growth may play a key role for policy implications.

Key Words

Economic Growth ; Nuclear Energy Consumption ; Panel Causality

In Basket

Export