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The Relationship between Economic Growth, Energy Consumption and Trade

Author

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  • Eyup Dogan

    (Department of Economics, Abdullah Gul University, Turkey.)

Abstract

The main objective of this study is to investigate the short-run and long-run estimates and causal relationship between energy consumption, trade and economic growth for Belgium in three different multivariate models in which economic growth, energy consumption and trade are dependent variables, respectively. This study confirms the existence of long-run relationship between the analyzed variables in the three models. In addition, the short-run and long-run elasticities are statistically significant in all the proposed models. Furthermore, the Granger causality test shows the evidence of feedback hypothesis between economic growth and energy consumption, between economic growth and trade, and between energy consumption and trade both in the short-run and long-run. Thus, Belgium should promote energy consumption and trade through appropriate policies to obtain sustainable long-run economic growth.

Suggested Citation

  • Eyup Dogan, 2016. "The Relationship between Economic Growth, Energy Consumption and Trade," Bulletin of Energy Economics (BEE), The Economics and Social Development Organization (TESDO), vol. 4(1), pages 70-80, March.
    • Handle: RePEc:ijr:beejor:v:4:y:2016:i:1:p:70-80
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    2. Tabish Nawab & Muhammad Faizan Aamir, 2020. "Determinants of CO2 emissions in the ASEAN Economies: The Role of Renewable and Non-renewable Energy," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 2(1), pages 13-24, June.
    3. Baz, Khan & Xu, Deyi & Ampofo, Gideon Minua Kwaku & Ali, Imad & Khan, Imran & Cheng, Jinhua & Ali, Hashmat, 2019. "Energy consumption and economic growth nexus: New evidence from Pakistan using asymmetric analysis," Energy, Elsevier, vol. 189(C).
    4. Drachal, Krzysztof, 2018. "Comparison between Bayesian and information-theoretic model averaging: Fossil fuels prices example," Energy Economics, Elsevier, vol. 74(C), pages 208-251.
    5. Păunică Mihai & Manole Alexandru & Motofei Cătălina & Tănase Gabriela-Lidia, 2021. "Final Consumption and Foreign Trade for Romania and European Union – A Granger causality-based analysis," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 15(1), pages 838-848, December.
    6. Liu, Hong & Wang, Chang & Wen, Fenghua, 2020. "Asymmetric transfer effects among real output, energy consumption, and carbon emissions in China," Energy, Elsevier, vol. 208(C).
    7. Cem Işik & Eyüp Doğan & Serdar Ongan, 2017. "Analyzing the Tourism–Energy–Growth Nexus for the Top 10 Most-Visited Countries," Economies, MDPI, vol. 5(4), pages 1-13, October.
    8. Huang, Zhilin & Zhang, Hong & Duan, Hongbo, 2020. "How will globalization contribute to reduce energy consumption?," Energy, Elsevier, vol. 213(C).

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    More about this item

    Keywords

    Economic Growth; Energy Consumption; Trade; Granger Causality; Belgium;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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