Causality between trade openness and energy consumption: What causes what in high, middle and low income countries
Muhammad Shahbaz (),
Chong Hui Ling and
Rashid Sbia ()
ULB Institutional Repository from ULB -- Universite Libre de Bruxelles
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 to examine long run relationship between the variables. The direction of causal relationship between trade openness is investigated by applying Homogenous non-causality, Homogenous causality and Heterogeneous causality tests.Our variables are integrated at I(1) confirmed by time series and panel unit root tests and cointegration is found between trade openness and energy consumption. 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. This paper opens up new insights for policy makers to design a comprehensive economic, trade and policies for sustainable economic growth in long run following heterogeneous causality findings. 2014 Elsevier Ltd.
Keywords: Causality; Energy; Trade (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ene and nep-int
Note: SCOPUS: ar.j
References: Add references at CitEc
Citations: View citations in EconPapers (64) Track citations by RSS feed
Published in: Energy policy (2014) v.70,p.126-143
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
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 (2013)
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:ulb:ulbeco:2013/168714
Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... lb.ac.be:2013/168714
Access Statistics for this paper
More papers in ULB Institutional Repository from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().