Economics at your fingertips  

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 David Roubaud

MPRA Paper from University Library of Munich, Germany

Abstract: 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 (5) Track citations by RSS feed

Downloads: (external link) original version (application/pdf)

Related works:
Journal Article: Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

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.
Series data maintained by Joachim Winter ().

Page updated 2018-03-21
Handle: RePEc:pra:mprapa:76527