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Energy Production and Regional Economic Growth in China: A More Comprehensive Analysis Using a Panel Model

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  • Yaobin Liu

    () (School of Economics and Management, Nanchang University, Nanchang 330031, China)

Abstract

China has witnessed a fast economic growth in the recent two decades. However, the heavy energy exploitation seems to show a negative relation to regional economic growth. Thus, the issue is whether the energy production is a curse or blessing for the regional economic growth in China. The present study deploys a comprehensive approach to rigorously prove the validity of a proposed panel data model that includes a second generation panel unit root test and panel cointegration and a spatial panel model. The results from the second generation panel unit root test and panel cointegration allowing for cross-sectional dependences show the differenced series are stationary and there exists a cointegration relationship among these variables for all sub-regions. The results from the spatial panel data model support the conjecture of the spatial dependent and show that there is a “resource curse” only for the Western region and Central region in China.

Suggested Citation

  • Yaobin Liu, 2013. "Energy Production and Regional Economic Growth in China: A More Comprehensive Analysis Using a Panel Model," Energies, MDPI, Open Access Journal, vol. 6(3), pages 1-12, March.
  • Handle: RePEc:gam:jeners:v:6:y:2013:i:3:p:1409-1420:d:24009
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    References listed on IDEAS

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    Cited by:

    1. Xu, Bin & Lin, Boqiang, 2015. "How industrialization and urbanization process impacts on CO2 emissions in China: Evidence from nonparametric additive regression models," Energy Economics, Elsevier, vol. 48(C), pages 188-202.
    2. Yi Hu & Dongmei Guo & Mingxi Wang & Xi Zhang & Shouyang Wang, 2015. "The Relationship between Energy Consumption and Economic Growth: Evidence from China’s Industrial Sectors," Energies, MDPI, Open Access Journal, vol. 8(9), pages 1-15, August.

    More about this item

    Keywords

    resource curse; regional imbalance; second generation panel unit root and cointegration; spatial panel data model; China;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other

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