Causality between Trade Openness and Energy Consumption: What Causes What in High, Middle and Low Income countries

Muhammad Shahbaz, Samia Nasreen, Chong Hui Ling and Rashid Sbia

MPRA Paper from University Library of Munich, Germany

Abstract: This paper explores the relationship between trade openness and energy consumption using data of 91 high, middle and low income countries. The study covers the period of 1980-2010. We have applied panel cointegration and causality approaches for long run and causal relationship between the variables. Our results confirm the presence of cointegration between the variables. The relationship between trade openness and energy consumption is inverted U-shaped in high income countries but U-shaped in middle and low income countries. The homogenous and non-homogenous causality analysis reveals the bidirectional causality between trade openness and energy consumption.

Keywords: Trade; Energy; Causality (search for similar items in EconPapers)
JEL-codes: C4 (search for similar items in EconPapers)
Date: 2013-10-01, Revised 2013-10-04
New Economics Papers: this item is included in nep-ene
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Causality between trade openness and energy consumption: What causes what in high, middle and low income countries (2014)
Journal Article: Causality between Trade Openness and Energy Consumption- What Causes What in High, Middle and Low Income Countries (2014)
Working Paper: Causality between trade openness and energy consumption: What causes what in high, middle and low income countries (2014)
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