Energy Consumption and Trade Openness Nexus in Egypt: Asymmetry Analysis
Tarek Tawfik Yousef Alkhateeb () and
Haider Mahmood ()
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Tarek Tawfik Yousef Alkhateeb: Department of Marketing, College of Business Administration, Prince Sattam Bin Abdulaziz University, P.O. Box 165, Al-Kharj 11942, Saudi Arabia
Energies, 2019, vol. 12, issue 10, 1-10
Trade openness may support the economic growth of any country but its environmental effects due to increasing energy consumption cannot be ignored. This research hypothesizes the asymmetrical effects of both economic growth and trade openness on the energy consumption of Egypt from 1971–2014. Our estimates suggest that both economic growth and trade openness have asymmetrical effects on the energy consumption in both long and short runs because magnitude of the effects are found unequal. Both increasing and decreasing economic growth have positive effects on the energy consumption in the long and short runs except an insignificant effect of decreasing economic growth in the short run. Increasing and decreasing trade openness have also positive effects on the energy consumption in the long and short runs except an insignificant effect of decreasing trade openness in the long run. The increasing energy consumption, as results of increasing economic growth and/or trade openness, may have environmental consequence. Therefore, we recommend the Egyptian government to diversify the energy consumption from fossil fuel sources.
Keywords: energy consumption; trade openness; economic growth; asymmetrical effects (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:12:y:2019:i:10:p:2018-:d:234481
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