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The energy-growth nexus in Thailand: Does trade openness boost up energy consumption?

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  • Kyophilavong, Phouphet
  • Shahbaz, Muhammad
  • Anwar, Sabeen
  • Masood, Sameen

Abstract

The nexus between trade openness and energy demand is hot topic of discussion among academicians and researchers, and numerous studies are available in existing literature while investigating the nexus between trade openness and energy demand. This paper explores the relationship between energy consumption, trade openness and economic growth in case of Thailand. In doing so, we have applied Bayer and Hanck cointegration approach to test whether the long run relationship exists between the variables. Our results confirm the presence of cointegration between the variables. Energy consumption stimulates economic growth. Trade openness adds in economic growth. The causality analysis reveals that energy consumption Granger causes economic growth and in resulting, economic growth Granger causes energy consumption. Trade openness and energy consumption are interdependent i.e. trade openness Granger causes energy consumption and in return, energy consumption Granger causes trade openness. This paper openness up new directions for policy making authorities in Thailand to design a comprehensive energy and trade policies to sustain economic growth for long run.

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  • Kyophilavong, Phouphet & Shahbaz, Muhammad & Anwar, Sabeen & Masood, Sameen, 2015. "The energy-growth nexus in Thailand: Does trade openness boost up energy consumption?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 46(C), pages 265-274.
    • Handle: RePEc:eee:rensus:v:46:y:2015:i:c:p:265-274
    DOI: 10.1016/j.rser.2015.02.004
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    Cited by:

    1. Huanying Cui, 2016. "China’s Economic Growth and Energy Consumption," International Journal of Energy Economics and Policy, Econjournals, vol. 6(2), pages 349-355.
    2. repec:eee:rensus:v:77:y:2017:i:c:p:1251-1260 is not listed on IDEAS
    3. Adom, Philip Kofi & Amuakwa-Mensah, Franklin, 2016. "What drives the energy saving role of FDI and industrialization in East Africa?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 925-942.
    4. Amri, Fethi, 2017. "Intercourse across economic growth, trade and renewable energy consumption in developing and developed countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 527-534.
    5. Destek, Mehmet Akif, 2016. "Renewable energy consumption and economic growth in newly industrialized countries: Evidence from asymmetric causality test," Renewable Energy, Elsevier, vol. 95(C), pages 478-484.
    6. Gozgor, Giray, 2016. "Are shocks to renewable energy consumption permanent or transitory? An empirical investigation for Brazil, China, and India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 66(C), pages 913-919.
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    8. Rafindadi, Abdulkadir Abdulrashid & Ozturk, Ilhan, 2016. "Effects of financial development, economic growth and trade on electricity consumption: Evidence from post-Fukushima Japan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 1073-1084.
    9. Marques, António Cardoso & Fuinhas, José Alberto & Nunes, André Roque, 2016. "Electricity generation mix and economic growth: What role is being played by nuclear sources and carbon dioxide emissions in France?," Energy Policy, Elsevier, vol. 92(C), pages 7-19.
    10. repec:eee:energy:v:128:y:2017:i:c:p:487-495 is not listed on IDEAS
    11. Chirwa, Themba G & Odhiambo, Nicholas M., 2018. "Electricity consumption and economic growth: New evidence from twelve countries," Working Papers 23508, University of South Africa, Department of Economics.
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    Keywords

    Energy; Trade; Growth; Thailand;

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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