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Remittances and disaggregated energy consumption in Bangladesh

Anupam Das () and Adian McFarlane ()
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Anupam Das: Mount Royal University
Adian McFarlane: King’s University College at Western University Canada

International Review of Economics, 2020, vol. 67, issue 2, No 6, 268 pages

Abstract: Abstract We examine the long- and short-run causal relations between remittances and the consumption of natural gas, electricity, petroleum, and coal for Bangladesh over the period 1980–2016. We find that there are bidirectional long-run cointegrating relationships between remittances and electricity consumption and between remittances and natural gas consumption. At the same time, a unidirectional long-run causality runs from coal consumption to remittances. There is no long-run causality between remittances and petroleum consumption, but we find short-run Granger causality running from the consumption of petroleum to remittances. An important policy implication of these findings is that the government of Bangladesh should further facilitate remittance inflows as these flows are intricately linked to energy consumption demand.

Keywords: Remittances; Energy consumption; Bangladesh; ARDL bounds test; Causality (search for similar items in EconPapers)
JEL-codes: C32 F24 F43 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/s12232-019-00339-4

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