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Energy Consumption and Growth in Romania: Evidence from a Panel Error Correction Model

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Author Info

  • Nicholas Apergisu

    (Department of Banking and Financial Management University of Piraeus, Greece)

  • Dan Danuletiu

    (Department of Economics and Business Administration, University of Alba Iulia, Romania.)

Abstract

This study examines the relationship between energy consumption and economic growth for the economy of Romania over the period 2000-2011 within a multivariate framework. A cointegration and error correction model is employed to infer the causal relationship. Cointegration test reveals a long-run equilibrium relationship between real GDP, energy consumption, the labor force, and real gross fixed capital formation with the respective coefficients positive and statistically significant. The Granger-causality results indicate both short-run and long-run causality from energy consumption to economic growth which supports the growth hypothesis.

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Bibliographic Info

Article provided by Econjournals in its journal International Journal of Energy Economics and Policy.

Volume (Year): 2 (2012)
Issue (Month): 4 ()
Pages: 348-356

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Handle: RePEc:eco:journ2:2012-04-13

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Related research

Keywords: Energy consumption; Growth; Cointegration tests; Granger-causality;

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References

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Citations

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Cited by:
  1. Muslima Zahan & Ron S. Kenett, 2013. "Modeling and Forecasting Energy Consumption in the Manufacturing Industry in South Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 3(1), pages 87-98.
  2. Hüseyin Kalyoncu & Faruk Gürsoy & Hasan Göcen, 2013. "Causality Relationship between GDP and Energy Consumption in Georgia, Azerbaijan and Armenia," International Journal of Energy Economics and Policy, Econjournals, vol. 3(1), pages 111-117.
  3. Hazuki ISHIDA, 2013. "Causal Relationship between Fossil Fuel Consumption and Economic Growth in Japan: A Multivariate Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 3(2), pages 127-136.

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