Please use this identifier to cite or link to this item: http://hdl.handle.net/10995/111791
Title: A Dynamic Linkage between Financial Development, Energy Consumption and Economic Growth: Evidence from an Asymmetric and Nonlinear ARDL Model
Authors: Khan, I.
Rehman, F. U.
Pypłacz, P.
Khan, M. A.
Wiśniewska, A.
Liczmańska-Kopcewicz, K.
Issue Date: 2021
Publisher: MDPI AG
MDPI AG
Citation: A Dynamic Linkage between Financial Development, Energy Consumption and Economic Growth: Evidence from an Asymmetric and Nonlinear ARDL Model / I. Khan, F. U. Rehman, P. Pypłacz et al. // Energies. — 2021. — Vol. 14. — Iss. 16. — 5006.
Abstract: Developing countries, including Pakistan, need a considerable effort to withstand economic growth; however, these countries have to cope with greenhouse gases emission and other environmental concerns. Financial advancement gives rise to modern, sometimes even innovative and energy-efficient technologies and, thus, contributes to a decline in energy usage among market entities: organizations and households. The current study explores the nonlinear asymmetric relationship between economic growth (Y) and the selected exogenous variables in Pakistan by incorporating time series data spanning from 1971 to 2016. Economic growth was considered as a target variable, while energy consumption (EC), electric power consumption (EPC), financial development (FD), and energy imports (EM) were considered independent variables. To investigate cointegration among the given variables, a nonlinear ARDL bound testing approach was employed. BDS independence test was used to check the nonlinearity, and a structural break unit root test was used for testing data stationarity. The findings confirm the presence of co-integration in the selected variables. A symmetric unidirectional significant causality exists running from EPC to Y, while a bidirectional symmetric causality was found between FD and Y. In contrast, any negative shocks in EPC, FD, and EM were found to have a positive asymmetric effect on Y. Meanwhile, a neutral effect was found between EC and Y. The outcomes of this study can provide guidelines for future re-searchers and policymakers. © 2021 by the authors. Licensee MDPI, Basel, Switzerland.
Keywords: ASYMMETRIES
ENERGY CONSUMPTION
ENERGY IMPORTS
FINANCIAL DEVELOPMENT
NARDL APPROACH
DEVELOPING COUNTRIES
ECONOMIC AND SOCIAL EFFECTS
ELECTRIC UTILITIES
ENERGY EFFICIENCY
ENERGY UTILIZATION
FINANCE
FINITE DIFFERENCE METHOD
GREENHOUSE GASES
ASYMMETRIC EFFECTS
ELECTRIC POWER CONSUMPTION
ENERGY EFFICIENT TECHNOLOGY
ENVIRONMENTAL CONCERNS
EXOGENOUS VARIABLES
GREENHOUSE GASES EMISSIONS
INDEPENDENT VARIABLES
ECONOMICS
URI: http://hdl.handle.net/10995/111791
Access: info:eu-repo/semantics/openAccess
SCOPUS ID: 85113237762
PURE ID: 22979050
ISSN: 1996-1073
Appears in Collections:Научные публикации, проиндексированные в SCOPUS и WoS CC

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