IDEAS home Printed from https://ideas.repec.org/a/spr/inrvec/v67y2020i2d10.1007_s12232-019-00339-4.html
   My bibliography  Save this article

Remittances and disaggregated energy consumption in Bangladesh

Author

Listed:
  • Anupam Das

    (Mount Royal University)

  • Adian McFarlane

    (King’s University College at Western University Canada)

Abstract

We examine the long- and short-run causal relations between remittances and the consumption of natural gas, electricity, petroleum, and coal for Bangladesh over the period 1980–2016. We find that there are bidirectional long-run cointegrating relationships between remittances and electricity consumption and between remittances and natural gas consumption. At the same time, a unidirectional long-run causality runs from coal consumption to remittances. There is no long-run causality between remittances and petroleum consumption, but we find short-run Granger causality running from the consumption of petroleum to remittances. An important policy implication of these findings is that the government of Bangladesh should further facilitate remittance inflows as these flows are intricately linked to energy consumption demand.

Suggested Citation

  • Anupam Das & Adian McFarlane, 2020. "Remittances and disaggregated energy consumption in Bangladesh," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 67(2), pages 251-268, June.
    • Handle: RePEc:spr:inrvec:v:67:y:2020:i:2:d:10.1007_s12232-019-00339-4
    DOI: 10.1007/s12232-019-00339-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12232-019-00339-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12232-019-00339-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chowdhury, Mamta B., 2011. "Remittances flow and financial development in Bangladesh," Economic Modelling, Elsevier, vol. 28(6), pages 2600-2608.
    2. Zapata, Hector O & Rambaldi, Alicia N, 1997. "Monte Carlo Evidence on Cointegration and Causation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(2), pages 285-298, May.
    3. Golam Ahamad, Mazbahul & Nazrul Islam, A.K.M., 2011. "Electricity consumption and economic growth nexus in Bangladesh: Revisited evidences," Energy Policy, Elsevier, vol. 39(10), pages 6145-6150, October.
    4. Munim K. Barai, 2012. "Development Dynamics of Remittances in Bangladesh," SAGE Open, , vol. 2(1), pages 21582440124, January.
    5. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    6. Shirin Akter, 2018. "Do remittances and foreign aid augment the gross savings: Bangladesh, India and Philippines perspective?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 65(4), pages 449-463, December.
    7. Toda, Hiro Y. & Yamamoto, Taku, 1995. "Statistical inference in vector autoregressions with possibly integrated processes," Journal of Econometrics, Elsevier, vol. 66(1-2), pages 225-250.
    8. Ronald Kumar & Peter Stauvermann, 2014. "Exploring the nexus between remittances and economic growth: a study of Bangladesh," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 61(4), pages 399-415, December.
    9. Mozumder, Pallab & Marathe, Achla, 2007. "Causality relationship between electricity consumption and GDP in Bangladesh," Energy Policy, Elsevier, vol. 35(1), pages 395-402, January.
    10. Ozturk, Ilhan, 2010. "A literature survey on energy-growth nexus," Energy Policy, Elsevier, vol. 38(1), pages 340-349, January.
    11. Subrata Ghatak & Jalal Siddiki, 2001. "The use of the ARDL approach in estimating virtual exchange rates in India," Journal of Applied Statistics, Taylor & Francis Journals, vol. 28(5), pages 573-583.
    12. Jahangir Alam, Mohammad & Ara Begum, Ismat & Buysse, Jeroen & Van Huylenbroeck, Guido, 2012. "Energy consumption, carbon emissions and economic growth nexus in Bangladesh: Cointegration and dynamic causality analysis," Energy Policy, Elsevier, vol. 45(C), pages 217-225.
    13. Biru Paul & Md. Uddin & Abdullah Noman, 2011. "Remittances and output in Bangladesh: an ARDL bounds testing approach to cointegration," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 58(2), pages 229-242, June.
    14. Paul, Biru Paksha & Uddin, Gazi Salah, 2011. "Energy and output dynamics in Bangladesh," Energy Economics, Elsevier, vol. 33(3), pages 480-487, May.
    15. Anupam Das & Murshed Chowdhury, 2019. "Macroeconomic impacts of remittances in Bangladesh: The role of reverse flows," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 48(3), November.
    16. Das, Anupam & McFarlane, Adian A. & Chowdhury, Murshed, 2013. "The dynamics of natural gas consumption and GDP in Bangladesh," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 269-274.
    17. Ahmed, Monir Uddin & Nurul Hossain, A.K.M. & Hasanuzzaman, Syed, 2015. "Exploring the depth of energy penetration in economic advancement: Perspective of Bangladesh," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 1033-1047.
    18. A. Nurul Hossain & Syed Hasanuzzaman, 2013. "Remittances and investment nexus in Bangladesh: an ARDL bounds testing approach," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 60(4), pages 387-407, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anupam Das & Adian McFarlane & Luc Carels, 2021. "Empirical exploration of remittances and renewable energy consumption in Bangladesh," Asia-Pacific Journal of Regional Science, Springer, vol. 5(1), pages 65-89, February.
    2. Agradi, Mawunyo, 2023. "Does remittance inflow influence energy poverty?," Applied Energy, Elsevier, vol. 335(C).
    3. Siddiqui, Aaliyah & Kautish, Pradeep & Sharma, Rajesh & Sinha, Avik & Siddiqui, Mujahid, 2022. "Evolving a policy framework discovering the dynamic association between determinants of oil consumption in India," Energy Policy, Elsevier, vol. 169(C).
    4. Alper Karasoy, 2021. "How do remittances to the Philippines affect its environmental sustainability? Evidence based on the augmented ARDL approach," Natural Resources Forum, Blackwell Publishing, vol. 45(2), pages 120-137, May.
    5. Ayse Ari, 2022. "Remittances and Energy Consumption: APanel Data Analysis for MENA Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 120-125.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anupam Das & Adian McFarlane & Luc Carels, 2021. "Empirical exploration of remittances and renewable energy consumption in Bangladesh," Asia-Pacific Journal of Regional Science, Springer, vol. 5(1), pages 65-89, February.
    2. Stephan B. Bruns, Christian Gross and David I. Stern, 2014. "Is There Really Granger Causality Between Energy Use and Output?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    3. Villanthenkodath, Muhammed Ashiq & Mahalik, Mantu Kumar, 2021. "Does economic growth respond to electricity consumption asymmetrically in Bangladesh? The implication for environmental sustainability," Energy, Elsevier, vol. 233(C).
    4. Shahbaz, Muhammad & Salah Uddin, Gazi & Ur Rehman, Ijaz & Imran, Kashif, 2014. "Industrialization, electricity consumption and CO2 emissions in Bangladesh," Renewable and Sustainable Energy Reviews, Elsevier, vol. 31(C), pages 575-586.
    5. Alam, Mohammad Jahangir & Ahmed, Mumtaz & Begum, Ismat Ara, 2017. "Nexus between non-renewable energy demand and economic growth in Bangladesh: Application of Maximum Entropy Bootstrap approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 399-406.
    6. Pan, Xiongfeng & Uddin, Md. Kamal & Saima, Umme & Guo, Shucen & Guo, Ranran, 2019. "Regime switching effect of financial development on energy intensity: Evidence from Markov-switching vector error correction model," Energy Policy, Elsevier, vol. 135(C).
    7. Pan, Xiongfeng & Uddin, Md. Kamal & Saima, Umme & Jiao, Zhiming & Han, Cuicui, 2019. "How do industrialization and trade openness influence energy intensity? Evidence from a path model in case of Bangladesh," Energy Policy, Elsevier, vol. 133(C).
    8. Marques, António Cardoso & Fuinhas, José Alberto & Neves, Sónia Almeida, 2018. "Ordinary and Special Regimes of electricity generation in Spain: How they interact with economic activity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 1226-1240.
    9. Abu Hasan & Anita Zaman & Zohirul Islam Sikder & Abdul Wadud, 2018. "The Dynamics of Electricity Consumption, Energy Use and GDP in Bangladesh," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 21(68), pages 40-53, June.
    10. Zhihui Lv & Amanda M. Y. Chu & Michael McAleer & Wing-Keung Wong, 2019. "Modelling Economic Growth, Carbon Emissions, and Fossil Fuel Consumption in China: Cointegration and Multivariate Causality," IJERPH, MDPI, vol. 16(21), pages 1-35, October.
    11. Hasan, Md. Bokhtiar & Ali, Md. Sumon & Uddin, Gazi Salah & Mahi, Masnun Al & Liu, Yang & Park, Donghyun, 2022. "Is Bangladesh on the right path toward sustainable development? An empirical exploration of energy sources, economic growth, and CO2 discharges nexus," Resources Policy, Elsevier, vol. 79(C).
    12. Yıldırım, Ertugrul & Sukruoglu, Deniz & Aslan, Alper, 2014. "Energy consumption and economic growth in the next 11 countries: The bootstrapped autoregressive metric causality approach," Energy Economics, Elsevier, vol. 44(C), pages 14-21.
    13. Abu Hasan & Anita Zaman & Zohirul Islam Sikder & Abdul Wadud, 0. "The Dynamics of Electricity Consumption, Energy Use and GDP in Bangladesh," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 20(65), pages 35-49, September.
    14. Ronald Kumar & Peter Stauvermann, 2014. "Exploring the nexus between remittances and economic growth: a study of Bangladesh," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 61(4), pages 399-415, December.
    15. Zhang, Guoxing & Nuruzzaman, Md & Su, Bin, 2021. "Nexus between household energy consumption and economic growth in Bangladesh (1975–2018)," Energy Policy, Elsevier, vol. 156(C).
    16. Gerard Bikorimana & Charles Rutikanga & Didier Mwizerwa, 2020. "Linking energy consumption with economic growth: Rwanda as a case study," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2020(2), pages 181-200.
    17. Bashiri Behmiri, Niaz & Pires Manso, José R., 2012. "Does Portuguese economy support crude oil conservation hypothesis?," Energy Policy, Elsevier, vol. 45(C), pages 628-634.
    18. Al-Mulali, Usama & Ozturk, Ilhan, 2014. "Are energy conservation policies effective without harming economic growth in the Gulf Cooperation Council countries?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 639-650.
    19. Man-Keun Kim & Kangil Lee, 2015. "Dynamic Interactions between Carbon and Energy Prices in the U.S. Regional Greenhouse Gas Initiative," International Journal of Energy Economics and Policy, Econjournals, vol. 5(2), pages 494-501.
    20. Tang, Chor Foon, 2008. "A re-examination of the relationship between electricity consumption and economic growth in Malaysia," Energy Policy, Elsevier, vol. 36(8), pages 3067-3075, August.

    More about this item

    Keywords

    Remittances; Energy consumption; Bangladesh; ARDL bounds test; Causality;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:inrvec:v:67:y:2020:i:2:d:10.1007_s12232-019-00339-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.