Energy Consumption, Financial Development and Economic Growth in India: New Evidence from a Nonlinear and Asymmetric Analysis
Muhammad Shahbaz (),
Thi Hong Van Hoang (),
Mantu Kumar and
MPRA Paper from University Library of Munich, Germany
This paper investigates the asymmetric relationship between energy consumption and economic growth by incorporating financial development, capital and labour into a production function covering the Indian economy from 1960Q1–2015Q4. The nonlinear autoregressive distributed lag bounds testing approach is applied to examine the asymmetric cointegration between the variables. An asymmetric causality test is also employed to examine the causal association between the considered variables. The results indicate cointegration between the variables in the presence of asymmetries. The asymmetric causality results show that only negative shocks in energy consumption have impacts on economic growth. In the same vein, only negative shocks in financial development have impacts on economic growth. By contrast, symmetrically, capital formation causes economic growth. Finally, over the study period, a neutral effect exists between the labour force and economic growth in India. The implications of these results for growth policies in India are also discussed.
Keywords: Financial Development; Energy; Growth; India; Asymmetries (search for similar items in EconPapers)
JEL-codes: C0 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ene
Date: 2017-01-01, Revised 2017-02-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24) Track citations by RSS feed
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/76527/1/MPRA_paper_76527.pdf original version (application/pdf)
Journal Article: Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:76527
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().