Energy consumption, employment, output, and temporal causality: evidence from Taiwan based on cointegration and error-correction modelling techniques

Tsangyao Chang, WenShwo Fang and Li-Fang Wen

Applied Economics, 2001, vol. 33, issue 8, 1045-1056

Abstract: In this study, a cointegration analysis and a vector autoregressive model (VAR) are used to examine the causal relationships among energy consumption, employment, and output for Taiwan over the period January 1982 to November 1997. Johansen (1988) and Johansen and Juselius (1990) cointegration test result indicates these three variables are cointegrated with one cointegrating vector. The results from Granger causality tests based on vector error-correction models (VECM) suggest bidirectional Grange causality for employment-output and employment-energy consumption, but only unidirectional causality running from energy consumption to output. Furthermore, the impulse responses and variance decompositions are also incorporated into the analysis. The results from impulsive response and variance decomposition analysis tell similar stories. Energy consumption appears to have led to output growth in Taiwan over this period. The policy implication of this finding is that energy conservation will restrain the output growth in Taiwan.

Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (77)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/00036840122484 (text/html)
Access to full text is restricted to subscribers.

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:taf:applec:v:33:y:2001:i:8:p:1045-1056

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036840122484

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().