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An investigation of cointegration between energy consumption and economic growth: Dynamic evidence from East Asian countries

Alper Aslan () and Hakan Kum

Global Economic Review, 2010, vol. 39, issue 4, 431-439

Abstract: This paper aims to investigate the relationship between energy consumption and economic growth for 11 East Asian countries over the period 1971-2005 by taking into account their strong relationships. Based on fully modified ordinary least squares (FMOLS) and dynamic OLS (DOLS) approaches, while there exists a strong relation running from economic growth to energy consumption, it is observed that the strong relationship which runs from energy consumption to economic growth is overwhelmingly rejected for all cases except Indonesia and the Philippines. Moreover the inverse relation between two variables is observed for these two countries.

Keywords: Energy consumption; GDP; East Asian countries; FMOLS; DOLS (search for similar items in EconPapers)
Date: 2010
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Handle: RePEc:taf:glecrv:v:39:y:2010:i:4:p:431-439