Energy–Finance–Growth Nexus in ASEAN-5 Countries: An ARDL Bounds Test Approach

Masnun Mahi, Seuk Wai Phoong, Izlin Ismail and Che Ruhana Isa
Additional contact information
Masnun Mahi: Department of Finance and Banking, Faculty of Business and Accountancy, University of Malaya, Kuala Lumpur 50603, Malaysia
Seuk Wai Phoong: Department of Operation and Management Information System, Faculty of Business and Accountancy, University of Malaya, Kuala Lumpur 50603, Malaysia
Izlin Ismail: Department of Finance and Banking, Faculty of Business and Accountancy, University of Malaya, Kuala Lumpur 50603, Malaysia
Che Ruhana Isa: Department of Accountancy, Faculty of Business and Accountancy, University of Malaya, Kuala Lumpur 50603, Malaysia

Sustainability, 2019, vol. 12, issue 1, 1-16

Abstract: This study examines the relationship between energy consumption, financial development and economic growth for ASEAN-5 countries, namely Malaysia, Indonesia, the Philippines, Singapore and Thailand, over the period from 1980 to 2017. Finance–growth and energy–growth relationships have been well researched; however, the energy–finance–growth nexus is an equally important but less explored area. Our Auto Regressive Distributed Lags (ARDL) bounds test for cointegration results suggests that the variables tend to move together in the long run for all countries, apart from Indonesia. Our study also considers the effect of a structural break due to financial crisis and confirms that the break does not affect the long-term relationship among the variables; in other words, the financial crisis does not affect the energy–finance–growth nexus. Hence, considering the consistency of energy consumption, the importance of the energy sector must not be undermined, and appropriate energy policies are instrumental in maintaining a well-managed financial sector for sustainable economic growth.

Keywords: energy consumption; financial development; economic growth; ASEAN; ARDL (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/12/1/5/pdf (application/pdf)
https://www.mdpi.com/2071-1050/12/1/5/ (text/html)

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:gam:jsusta:v:12:y:2019:i:1:p:5-:d:299101

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().