The asymmetric relationship between financial development, trade openness, foreign capital flows, and renewable energy consumption: Fresh evidence from panel NARDL investigation
Md Qamruzzaman and
Wei Jianguo
Renewable Energy, 2020, vol. 159, issue C, 827-842
Abstract:
No substantial evidence available in existing literature regarding the pattern of financial development, trade openness and foreign capital effect on renewable energy consumption. With this study, we tried to fill the gap by figuring out the answer to the question of whether the relationships between financial development, trade openness, capital flows and the renewable energy consumption is symmetric or asymmetric by applying Panel Non-linear Autoregressive Distributed Lagged from 1990 to 2017. Non-linear estimation confirms the long-run asymmetric relationships between financial development, trade openness, capital flows, and renewable energy consumption in the case of all three subsamples namely, low-income countries, middle-income countries, and upper-middle-income panel. Furthermore, in the short-run, the asymmetric relationship also confirms except in Lower-income countries. We, furthermore, investigate the directional causality with System-GMM specification under the error correction model. Findings unveiled the long-run causality in particular when renewable energy consumption treated as a dependent variable in the equation.
Keywords: Renewable energy; Financial development; Trade openness; FDI; Asymmetry (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (84)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0960148120309794
Full text for ScienceDirect subscribers only
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:159:y:2020:i:c:p:827-842
DOI: 10.1016/j.renene.2020.06.069
Access Statistics for this article
Renewable Energy is currently edited by Soteris A. Kalogirou and Paul Christodoulides
More articles in Renewable Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu (repec@elsevier.com).