EXPLORING THE RELATIONSHIP BETWEEN ENERGY USAGE AND ECONOMIC GROWTH: IN THE PERSPECTIVE OF BRICS NATIONS

Syed Fazal Rehman and Hadya Fatima Cheema
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Syed Fazal Rehman: Department of Economics, Comsats University, Islamabad Campus.
Hadya Fatima Cheema: Department of Economics, Comsats University, Islamabad Campus.

Bulletin of Business and Economics (BBE), 2021, vol. 10, issue 1, 17-26

Abstract: We investigated the relation among energy usage and economic growth for BRICS nations using panel data from 1990 to 2019 in this study. GDP per capita as our dependent variable and Energy use, Gross fixed capital formation, Total Labor force are our independent variables. We applied Pedroni’s test cointegration, Kao residual cointegration test, and Johansen fisher cointegration test for panel data. 2 out of these 3 techniques have reflected the presence of long-run cointegration and equilibrium relationship among our variables. Our panel ECM revealed the presence of long causality between the variables. Unidirectional causality by dependent variable on independent variables is observed in pairwise testing for causality. But no evidence of the presence of any causal effect of energy use on economic expansion is found. Outcomes of FMOLS estimation reflected energy usage as an insignificant variable.

Keywords: Economic expansion; Economic growth; Energy (search for similar items in EconPapers)
JEL-codes: O40 P18 (search for similar items in EconPapers)
Date: 2021
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