A Dynamic Multivariate Causality Analysis of Energy–Growth Nexus Using ARDL Approach: A Malaysian Energy Policy Perspective

This study analyzes a dynamic long-run and short-run causal nexus between energy consumption and economic growth in the presence of capital, labor, and urbanization over the period 1971–2014, in Malaysia. The stationarity issue was tested using augmented Dickey–Fuller (ADF), Kwiatkowski–Phillips–Sch...

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Autores principales:	Habib Nawaz Khan, Melfi Alrasheedi, Gulap Shahzada
Formato:	article
Lenguaje:	EN
Publicado:	Frontiers Media S.A. 2021
Materias:	energy economic growth unit root co-integration causality General Works A
Acceso en línea:	https://doaj.org/article/e5ea670db61f4ed98b06689841c416d5
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spelling	oai:doaj.org-article:e5ea670db61f4ed98b06689841c416d52021-12-01T09:17:08ZA Dynamic Multivariate Causality Analysis of Energy–Growth Nexus Using ARDL Approach: A Malaysian Energy Policy Perspective2296-598X10.3389/fenrg.2021.735729https://doaj.org/article/e5ea670db61f4ed98b06689841c416d52021-11-01T00:00:00Zhttps://www.frontiersin.org/articles/10.3389/fenrg.2021.735729/fullhttps://doaj.org/toc/2296-598XThis study analyzes a dynamic long-run and short-run causal nexus between energy consumption and economic growth in the presence of capital, labor, and urbanization over the period 1971–2014, in Malaysia. The stationarity issue was tested using augmented Dickey–Fuller (ADF), Kwiatkowski–Phillips–Schmidt–Shin (KPSS), and Ng–Perron tests. However, a dynamic long-run co-integration relation between variables was checked through the ARDL technique. An unrestricted vector error correction model (MUVECM) was used to estimate the short-run and long-run dynamic relations between the parameters and the Engle–Granger method was used for causality analysis. Results of statistical analysis confirmed that all variables were found to be I (1) except variable labour was I(0) and none of the variables was I(2). Total energy consumption Granger caused GDP in one direction over the period 1992-2010 in the case of Croatia. However, labor and urbanization impacts were mixed. The Granger causality analysis confirmed mixed results in the short run and the long run. Moreover, estimated results confirmed a feedback hypothesis between income and capital was in the short term and the long run. The short-run and long-run causal effects of labor force on economic growth were confirmed. This study provides important insights to policymakers and energy economists. Prudent energy conservation policies and economically improved measures would be of great help. However, demand-side management-based policies would have no adverse effect on the economic performance of Malaysia.Habib Nawaz KhanMelfi AlrasheediGulap ShahzadaFrontiers Media S.A.articleenergyeconomic growthunit rootco-integrationcausalityGeneral WorksAENFrontiers in Energy Research, Vol 9 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	energy economic growth unit root co-integration causality General Works A
spellingShingle	energy economic growth unit root co-integration causality General Works A Habib Nawaz Khan Melfi Alrasheedi Gulap Shahzada A Dynamic Multivariate Causality Analysis of Energy–Growth Nexus Using ARDL Approach: A Malaysian Energy Policy Perspective
description	This study analyzes a dynamic long-run and short-run causal nexus between energy consumption and economic growth in the presence of capital, labor, and urbanization over the period 1971–2014, in Malaysia. The stationarity issue was tested using augmented Dickey–Fuller (ADF), Kwiatkowski–Phillips–Schmidt–Shin (KPSS), and Ng–Perron tests. However, a dynamic long-run co-integration relation between variables was checked through the ARDL technique. An unrestricted vector error correction model (MUVECM) was used to estimate the short-run and long-run dynamic relations between the parameters and the Engle–Granger method was used for causality analysis. Results of statistical analysis confirmed that all variables were found to be I (1) except variable labour was I(0) and none of the variables was I(2). Total energy consumption Granger caused GDP in one direction over the period 1992-2010 in the case of Croatia. However, labor and urbanization impacts were mixed. The Granger causality analysis confirmed mixed results in the short run and the long run. Moreover, estimated results confirmed a feedback hypothesis between income and capital was in the short term and the long run. The short-run and long-run causal effects of labor force on economic growth were confirmed. This study provides important insights to policymakers and energy economists. Prudent energy conservation policies and economically improved measures would be of great help. However, demand-side management-based policies would have no adverse effect on the economic performance of Malaysia.
format	article
author	Habib Nawaz Khan Melfi Alrasheedi Gulap Shahzada
author_facet	Habib Nawaz Khan Melfi Alrasheedi Gulap Shahzada
author_sort	Habib Nawaz Khan
title	A Dynamic Multivariate Causality Analysis of Energy–Growth Nexus Using ARDL Approach: A Malaysian Energy Policy Perspective
title_short	A Dynamic Multivariate Causality Analysis of Energy–Growth Nexus Using ARDL Approach: A Malaysian Energy Policy Perspective
title_full	A Dynamic Multivariate Causality Analysis of Energy–Growth Nexus Using ARDL Approach: A Malaysian Energy Policy Perspective
title_fullStr	A Dynamic Multivariate Causality Analysis of Energy–Growth Nexus Using ARDL Approach: A Malaysian Energy Policy Perspective
title_full_unstemmed	A Dynamic Multivariate Causality Analysis of Energy–Growth Nexus Using ARDL Approach: A Malaysian Energy Policy Perspective
title_sort	dynamic multivariate causality analysis of energy–growth nexus using ardl approach: a malaysian energy policy perspective
publisher	Frontiers Media S.A.
publishDate	2021
url	https://doaj.org/article/e5ea670db61f4ed98b06689841c416d5
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A Dynamic Multivariate Causality Analysis of Energy–Growth Nexus Using ARDL Approach: A Malaysian Energy Policy Perspective

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