Energy Consumption and Growth in Romania: Evidence from a Panel Error Correction Model
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 equ...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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EconJournals
2012-12-01
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| Series: | International Journal of Energy Economics and Policy |
| Subjects: | |
| Online Access: | https://dergipark.org.tr/tr/pub/ijeeep/issue/31902/350697?publisher=http-www-cag-edu-tr-ilhan-ozturk |
| Summary: | 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. |
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| ISSN: | 2146-4553 |