Omay, Tolga and Hasanov, Mubariz and Ucar, Nuri (2012): Energy consumption and economic growth: evidence from nonlinear panel cointegration and causality tests.
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In this paper, we propose a nonlinear cointegration test for heterogeneous panels where the alternative hypothesis is an exponential smooth transition (ESTAR) model. We apply our tests for investigating cointegration relationship between energy consumption and economic growth for the G7 countries covering the period 1977-2007. Moreover, we estimate a nonlinear Panel Vector Error Correction Model in order to analyze the direction of the causality between energy consumption and economic growth. By using nonlinear causality tests we analyze the causality relationships in low economic growth and high economic growth regimes. Furthermore, we deal with the cross section dependency problem in both nonlinear panel cointegration test and nonlinear Panel Vector Error Correction Model.
|Item Type:||MPRA Paper|
|Original Title:||Energy consumption and economic growth: evidence from nonlinear panel cointegration and causality tests|
|English Title:||Energy Consumption and Economic Growth: Evidence from Nonlinear Panel Cointegration and Causality Tests|
|Keywords:||Nonlinear panel cointegration, nonlinear Panel Vector Error Correction Model, cross section dependency|
|Subjects:||C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C13 - Estimation: General
C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C23 - Models with Panel Data; Longitudinal Data; Spatial Time Series
C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models; Multiple Variables > C33 - Models with Panel Data; Longitudinal Data; Spatial Time Series
|Depositing User:||Tolga Omay|
|Date Deposited:||26. Mar 2012 14:15|
|Last Modified:||13. Feb 2013 13:53|
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