NDLI: Energy Dependence in Developing Countries: Does the Level of Income Matter?

Content Provider	Springer Nature Link
Author	Odhiambo, Nicholas M.
Copyright Year	2014
Abstract	This paper re-examines the causal relationship between energy consumption and economic growth in four developing countries. The four countries include two lower-middle income economies, Ghana and Cote d’Ivoire, and two upper-middle income economies, Brazil and Uruguay. The study attempts to answer one critical question: Is the causal relationship between energy consumption and economic growth sensitive to a country’s level of income? In order to account for the omission-of-variable bias, the study incorporates exports as an intermittent variable between energy consumption and economic growth—thereby creating a simple multivariate model. Using the auto-regressive distributed lag (ARDL)-bounds testing procedure, our results show that while energy consumption Granger-causes economic growth in upper-middle income countries, in lower-middle income countries it is economic growth that drives energy consumption.
Starting Page	65
Ending Page	77
Page Count	13
File Format	PDF
ISSN	01974254
Journal	Atlantic Economic Journal
Volume Number	42
Issue Number	1
e-ISSN	15739678
Language	English
Publisher	Springer US
Publisher Date	2014-02-25
Publisher Place	Boston
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Energy and the Macroeconomy Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models Economic Growth and Aggregate Productivity: General Developing countries Energy dependence Economic growth Economics general Macroeconomics/Monetary Economics Microeconomics International Economics Public Finance & Economics
Content Type	Text
Resource Type	Article
Subject	Economics, Econometrics and Finance

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