Examining the Linkages Between Financial Development and Energy Consumption in India

Seema Saini () and Yadawananda Neog
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Seema Saini: IIT Kanpur

Chapter Chapter 8 in Current Issues in the Economy and Finance of India, 2018, pp 119-130 from Springer

Abstract: Abstract This paper examines the long-run equilibrium and the existence of the causal relationship between financial development, energy consumption, economic growthEconomic growth and FDI in IndiaIndia for the period 1978–2014. The Johansen-Juselius maximum likelihood procedure in the multivariate framework and Granger causalityGranger causality in the vector error correction framework (VECM) is employed to examine the co-integrationCo-Integration and causal association between the considered variables. The results of Johansen-Juselius co-integrationCo-Integration test shows that there is long-run equilibrium relationship among variables. We also find that there is no long-run causalityCausality between the variables, but there exists bi-directional short-run causalityCausality between financial development and energy consumption in IndiaIndia . Based on these results, suitable growth policies are also discussed for IndiaIndia .

Keywords: Energy-finance; Co-integration; Causality (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-319-99555-7_8

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DOI: 10.1007/978-3-319-99555-7_8

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