EconPapers    
Economics at your fingertips  
 

The Nexus Between Energy and Trade in South Asia: A Panel Analysis

Azreen Benazir Abdullah Ahmed, Sakib Amin, Charles Harvie and Rabindra Nepal ()

Economic Papers, 2021, vol. 40, issue 2, 134-151

Abstract: Following Sadorsky (Energy Economics, 2011, 33, 739), we examine the nexus between energy and trade in South Asia in a panel framework using annual data from 1990 to 2015. Given the cross‐sectional dependency issue, we use robust second‐generation panel econometric methods for the analysis. We find that variables are stationary at the first difference and cointegrated in the long run. The Dumitrescu‐Hurlin panel causality test shows a long‐run unidirectional causality from trade openness to energy consumption but not vice versa. Moreover, the panel symmetric and asymmetric estimation techniques reveal that energy consumption rises by 0.47 per cent on average and 0.83 per cent, with a 1 per cent rise in trade openness in the long run. However, a negative shock of similar magnitude reduces energy consumption by 0.37 per cent. We further fortify the panel results in the country‐level data with robust methods. We recommend energy efficiency and conservation policies and renewable energy technology augmentation policies through bilateral or multilateral trade strategies for sustainable development in the selected South Asian countries.

Date: 2021
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/1759-3441.12311

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:bla:econpa:v:40:y:2021:i:2:p:134-151

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0812-0439

Access Statistics for this article

Economic Papers is currently edited by Professor Guay Lim

More articles in Economic Papers from The Economic Society of Australia Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2021-08-19
Handle: RePEc:bla:econpa:v:40:y:2021:i:2:p:134-151