Causal relationships between energy consumption, foreign direct investment and economic growth: Fresh evidence from dynamic simultaneous-equations models

Anis Omri () and Bassem Kahouli

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the interrelationships between energy consumption, foreign direct investment and economic growth using dynamic panel data models in simultaneous-equations for a global panel consisting of 65 countries. The time component of our dataset is 1990–2011 inclusive. To make the panel data analysis more homogenous, we also investigate this interrelationship for a number of sub-panels which are constructed based on the income level of countries. In this way, we end up with three income panels; namely, high income, middle income, and low income panels. In the empirical part, we draw on growth theory and augment the classical growth model, which consists of capital stock, labor force and inflation, with foreign direct investment and energy. Generally, we shows mixed results about the interrelationship between energy consumption, FDI and economic growth.

Keywords: Energy consumption; FDI inflows; Economic growth. (search for similar items in EconPapers)
JEL-codes: C3 O4 Q4 (search for similar items in EconPapers)
Date: 2013-12-18, Revised 2013-11-22
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Journal Article: Causal relationships between energy consumption, foreign direct investment and economic growth: Fresh evidence from dynamic simultaneous-equations models (2014)
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