Energy consumption and economic development: Granger causality analysis for Vietnam

Duy Loi Nguyen
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Duy Loi Nguyen: VASS

No 14, Working Papers from Development and Policies Research Center (DEPOCEN), Vietnam

Abstract: The paper aims at investigating the causal relationship between energy consumption, GDP and trade in Vietnam for the period of reform (Doi moi),1986- 2006. We apply the method of Granger causality test to examine this relationship. Both bivariate and multivariate models of Granger causality test have been applied. Our results indicate the existence of the strong long- and short- run bidirectional Granger causality relationship between GDP and trade, energy and GDP in the long run. In the short run, we also found the weak unidirectional Granger causality running from GDP to Energy and from trade to energy.

Keywords: Granger causality; energy consumption; GDP; trade (search for similar items in EconPapers)
JEL-codes: F14 F18 O11 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2012
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:dpc:wpaper:1412

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