Dynamic linkages among financial development, economic growth, energy consumption, CO 2 emissions and gross fixed capital formation patterns in Malaysia

Hussain Ali Bekhet, Tahira Yasmin and Raed Walid Al-Smadi

International Journal of Business and Globalisation, 2017, vol. 18, issue 4, 493-523

Abstract: The aim of this research is to examine the dynamic relationship among financial development, economic growth, energy consumption, CO₂ emissions and gross fixed capital formation in Malaysia. Time series data for the period 1970 to 2013, the ARDL model and multivariate Granger causality tests are used to determine the dynamic interrelationship among the study variables. The overall results show: 1) that all the variables are co-integrated during the study period; 2) a long- and short-run relationship existed between energy consumption and economic growth; 3) a long-run unidirectional Granger causality among the study variables is found; 4) there is a bidirectional causality running from economic growth to energy consumption and CO₂ emission in the short run. It concludes that, with financial development and economic growth, effective energy policies need to cut the emissions level. The present study may guide the policymakers in formulating proper energy planning in Malaysia to attain future environmental targets while enhancing the financial perspective.

Keywords: financial development; economic growth; energy consumption; CO 2 emissions; gross fixed capital formation; ARDL model; Malaysia. (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.inderscience.com/link.php?id=84355 (text/html)
Access to full text is restricted to subscribers.

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:ids:ijbglo:v:18:y:2017:i:4:p:493-523

Access Statistics for this article

More articles in International Journal of Business and Globalisation from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().