EconPapers    
Economics at your fingertips  
 

ROLE OF FINANCIAL DEVELOPMENT FOR SOLVING THE ENERGY INSECURITY IN ASIA

Pichayakone Rakpho, Woraphon Yamaka, Wachirawit Puttachai and Paravee Maneejuk
Additional contact information
Pichayakone Rakpho: Center of Excellence in Econometrics, Faculty of Economics, Chiang Mai University, Chiang Mai 50200, Thailand
Woraphon Yamaka: Center of Excellence in Econometrics, Faculty of Economics, Chiang Mai University, Chiang Mai 50200, Thailand
Wachirawit Puttachai: Center of Excellence in Econometrics, Faculty of Economics, Chiang Mai University, Chiang Mai 50200, Thailand
Paravee Maneejuk: Center of Excellence in Econometrics, Faculty of Economics, Chiang Mai University, Chiang Mai 50200, Thailand

The Singapore Economic Review (SER), 2021, vol. 66, issue 02, 413-434

Abstract: This study aims to investigate the nonlinear effect of financial development on energy security in Asia-16 countries over the period 2000–2016 using the proposed Panel Smooth Transition model for heterogeneity in time trends. Our model shows a single-threshold effect on financial development and energy security relationship, whereas energy accessibility, renewable energy share, and energy intensity are used as indicators of energy security. It implies that the sample can be split into two regimes: low- and high-FDI regime, we choose FDI as the threshold variable because it is a source of innovation that could reduce the demand for energy. The findings indicate that financial development goes hand-in-hand with energy accessibility and renewable energy share, and it also reduces the energy inefficiency in the economy. We also find that the contribution of financial development on renewable energy share becomes more substantial when the FDI is greater than the threshold point (0.9343% of GDP). However, the value of crude oil imports shows a negative impact on energy security in our empirical model.

Keywords: Financial development; sustainable development goals; energy insecurity; panel smooth transition model for heterogeneity in time trends (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217590820430018
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:wsi:serxxx:v:66:y:2021:i:02:n:s0217590820430018

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217590820430018

Access Statistics for this article

The Singapore Economic Review (SER) is currently edited by Euston Quah

More articles in The Singapore Economic Review (SER) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().

 
Page updated 2021-03-11
Handle: RePEc:wsi:serxxx:v:66:y:2021:i:02:n:s0217590820430018