EXPLORING THE RELATIONSHIP BETWEEN ENERGY USAGE AND ECONOMIC GROWTH: IN THE PERSPECTIVE OF BRICS NATIONS
DOI:
https://doi.org/10.61506/Keywords:
Economic expansion, Economic growth, EnergyAbstract
We investigated the relation among energy usage and economic growth for BRICS nations using panel data from 1990 to 2019 in this study. GDP per capita as our dependent variable and Energy use, Gross fixed capital formation, Total Labor force are our independent variables. We applied Pedroni’s test cointegration, Kao residual cointegration test, and Johansen fisher cointegration test for panel data. 2 out of these 3 techniques have reflected the presence of long-run cointegration and equilibrium relationship among our variables. Our panel ECM revealed the presence of long causality between the variables. Unidirectional causality by dependent variable on independent variables is observed in pairwise testing for causality. But no evidence of the presence of any causal effect of energy use on economic expansion is found. Outcomes of FMOLS estimation reflected energy usage as an insignificant variable.
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