The Energy-Growth Nexus in Thailand: Does Trade Openness Boost up Energy Consumption?

Phouphet Kyophilavong, Muhammad Shahbaz, Sabeen Anwar and Sameen Masood

MPRA Paper from University Library of Munich, Germany

Abstract: The nexus between trade openness and energy demand is hot topic of discussion among academicians and researchers, and numerous studies are available in existing literature while investigating the nexus between trade openness and energy demand. This paper explores the relationship between energy consumption, trade openness and economic growth in case of Thailand. In doing so, we have applied Bayer and Hanck cointegration approach to test whether the long run relationship exists between the variables. Our results confirm the presence of cointegration between the variables. Energy consumption stimulates economic growth. Trade openness adds in economic growth. The causality analysis reveals that energy consumption Granger causes economic growth and in resulting, economic growth Granger causes energy consumption. Trade openness and energy consumption are interdependent i.e. trade openness Granger causes energy consumption and in return, energy consumption Granger causes trade openness. This paper openness up new directions for policy making authorities in Thailand to design a comprehensive energy and trade policies to sustain economic growth for long run.

Keywords: Energy; Trade; Growth; Thailand (search for similar items in EconPapers)
JEL-codes: C1 C5 (search for similar items in EconPapers)
Date: 2015-02-01, Revised 2015-02-05
New Economics Papers: this item is included in nep-ene and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (39)

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Journal Article: The energy-growth nexus in Thailand: Does trade openness boost up energy consumption? (2015)
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