The Causal Relationship between Fuel Consumption, Exchange Rates and Economic Growth in South East Sulawesi, Indonesia

Manat Rahim, Pasrun Adam, Heppi Millia, La Ode Suriadi and La Ode Ode Saidi
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Manat Rahim: Department of Economics, Universitas Halu Oleo, Kendari, Indonesia,
Pasrun Adam: Department of Mathematics, Universitas Halu Oleo, Kendari, Indonesia.
Heppi Millia: Department of Economics, Universitas Halu Oleo, Kendari, Indonesia,
La Ode Suriadi: Department of Economics, Universitas Halu Oleo, Kendari, Indonesia,
La Ode Ode Saidi: Department of Mathematics, Universitas Halu Oleo, Kendari, Indonesia.

International Journal of Energy Economics and Policy, 2021, vol. 11, issue 6, 1-6

Abstract: This article reports the results of a study examining the causal relationship between fuel consumption, exchange rates, and economic growth in Southeast Sulawesi, Indonesia. The data used are annual time series data ranging from 1988 to 2016. The estimation results of the VAR model and the Granger causality test indicate that the causal relationship that occurs is only a short-term causality, namely from fuel consumption to economic growth.

Keywords: fuel consumption; exchange rate; economic growth; VAR model; Granger causality test. (search for similar items in EconPapers)
JEL-codes: C12 C32 E21 F31 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2021-06-1

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