Sbia
Publications
The present study explores the relationship between economic growth, electricity consumption, urbanization and environmental degradation in case of United Arab Emirates (UAE). The study covers the quarter frequency data over the period of 1975-2011. We have applied the ARDL bounds testing approach to examine the long run relationship between the variables in the presence of structural breaks. The VECM Granger causality is applied to investigate the direction of causal relationship between the variables. Our empirical exercise reported the existence of cointegration among the series. Further, we found an inverted U-shaped relationship between economic growth and CO2 emissions i.e. economic growth raises energy emissions initially and declines it after a threshold point of income per capita (EKC exists). Electricity consumption declines CO2 emissions. The relationship between urbanization and CO2 emissions is positive. Exports seem to improve the environmental quality by lowering CO2 emissions. The causality analysis validates the feedback effect between CO2 emissions and electricity consumption. Economic growth and urbanization Granger cause CO2 emissions. (C) 2014 Elsevier Ltd. All rights reserved.
The goal of this study is to investigate the causal relationship between financial development and economic growth in Gulf Cooperation Council (GCC) countries, i.e. Bahrain, Oman, Kuwait, Qatar, United Arab Emirates and Saudi Arabia, over the period 1980-2012. We employ panel unit root tests, and Error Correction Model and cointegration techniques to detect long-run and short-run causalities between the variables used in our study. The overall empirical results reveal that the financial sector development contributes significantly to economic growth in the GCC countries. Our results could be of great interest for policymakers since the financial sector could play a crucial role in lowering the dependency of the governments to oil revenues and could contribute significantly to spur economic growth.
This paper tests the causal relationship between per capita electricity consumption and gross domestic product (GDP) per capita for Brazil, India, Indonesia, China and South Africa for the period 1971–2009. To reach this goal, we use panel cointegration analysis and Granger causality tests. Our results reveal that electricity consumption and GDP are cointegrated and the granger causality tests indicate a long-run relationship between electricity consumption and GDP growth for all countries except for South Africa. The short-run estimations indicate that GDP granger cause electricity consumption but not the reverse; hence the existence of unidirectional short-run causality relationship between the two variables.
This paper explores the relationship between trade openness and energy consumption using data of 91 high, middle and low income countries. The study covers the period of 1980–2010. We have applied panel cointegration to examine long run relationship between the variables. The direction of causal relationship between trade openness is investigated by applying Homogenous non-causality, Homogenous causality and Heterogeneous causality tests.
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We contribute to the economic growth–CO2 emissions literature in the MENA region by focusing on both production and environmental functions. Adopting an original analytical framework, our empirical investigation parallels two approaches. The first one follows the studies by Lean and Smyth (2010a) and Sadorsky (2012) which examine the dynamic interaction of energy consumption and trade openness using production function. The second one extends the recent works by Halicioglu (2009), Jalil and Mahmud (2009), and Jayanthakumaran et al. (2012) which attempt to introduce energy consumption and trade openness in the environmental function as a solution to circumvent omitted variable bias. Our findings suggest that MENA countries should adopt policies to control the increase of pollution as well as to stabilize the productivity growth. One of these policies is to increase the share of renewable energy relative to non-renewable energy sources.
This paper explores the relationship between electricity consumption, foreign direct investment, capital and economic growth in the case of the Kingdom of Bahrain. The Cobb–Douglas production is used over the period of 1980Q1–2010Q4. We have applied the ARDL bounds testing approach and found that cointegration exists among the series. Electricity consumption, foreign direct investment and capital add in economic growth. The VECM Granger causality analysis has exposed the feedback effect between electricity consumption and economic growth and the same is true for foreign direct investment and electricity consumption. This study suggests government authorities to explore new sources of energy to achieve sustainable economic development for the long run.
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This paper investigates the relationship between foreign direct investment, clean energy, trade openness, carbon emissions and economic growth in case of UAE covering the period of 1975Q1–2011Q4. We have tested the unit properties of variables in the presence of structural breaks. The ARDL bounds testing approach is applied to examine the cointegration by accommodating structural breaks stemming in the series. The VECM Granger causality approach is also applied to investigate the causal relationship between the variables. Our empirical findings confirm the existence of cointegration between the series. We find that foreign direct investment, trade openness and carbon emissions decline energy demand. Economic growth and clean energy have positive impact on energy consumption.
The present study examines the relationship between electricity consumption and economic growth using the data of the Kingdom of Bahrain. The study covers the period of 1980-2008. The Johansen-Fisher cointegration approach is applied and results indicate the presence of cointegration between electricity consumption and economic growth. The VECM Granger causality analysis reveals that the relationship between electricity consumption and economic growth in long run is bidirectional but in short run, economic growth is Granger cause of electricity consumption.
