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

Author

Listed:
  • 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.

Suggested Citation

  • Nicholas Apergisu & Dan Danuletiu, 2012. "Energy Consumption and Growth in Romania: Evidence from a Panel Error Correction Model," International Journal of Energy Economics and Policy, Econjournals, vol. 2(4), pages 348-356.
    • Handle: RePEc:eco:journ2:2012-04-13
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Energy consumption; Growth; Cointegration tests; Granger-causality;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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