Conventional panel models that overlook nonlinearity, nonstationarity, heterogeneity and cross-sectional dependency when analysing the energy-growth nexus might produce misleading conclusions. In addressing these issues, this study extends the examination of the nexus by applying nonstationary panel models with common correlated effects (CCE). They involve two estimators, namely CCE mean group (CCEMG) and augmented mean group (AMG) estimators. The main objective is to examine the effects of total and renewable energy consumption on the gross domestic product (GDP) by comparing the top oil-importing and top oil-exporting countries. The datasets are in annual frequency, ranging from 1992 to 2015. The results are compared to ordinary least squares (OLS)-type models that serve as benchmarks. This study innovates the models by incorporating the asymmetric effects of energy consumption into the estimations. The findings reveal a positive correlation between total energy consumption and GDP for both panel groups, and capital input is one of the determinants in all cases. The results disclose evidence of the asymmetric effects of total and renewable energy consumption. The positive impact of total/renewable energy consumption decreases for the top oil-exporting group is more apparent than its increases, signifying the importance of energy conservation. For top oil-importing nations, increased renewable energy consumption impedes the GDP, but the increase in total energy consumption accelerates it. Energy efficiency policies should be implemented in oil-importing countries since the positive impact of total energy consumption is smaller than in the other group.

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The effect of oil shock on the global economy is evident through many studies. However, the effect is heterogeneous over time. One of the reasons that lead to such different impacts is due to the oil source that is either the oil shock is demand or supply-driven. Applying the structural vector autoregressive (SVAR) model to generate the three oil shocks based on the three oil sources (oil supply, oil demand and oil specific-demand), we extended the examination on the effect of oil shock on the global economy using the threshold regression. Our results reveal the threshold effects of oil directly and indirectly on the global economy. The impacts of oil shocks differ across sectors, implying oil intensity, as well as oil sources, are the factors that determine the impact of oil shocks on the global economy. Overall, the oil specific-demand shock is more influential among the three oil shocks. Hence, the global economy is oil demand-driven. Besides that, the impact of oil is relatively large in the energy sector when compared to the non-energysector and precious metals industry. Despite that, the impact of oil shocks is small if compared to the non-oil shocks such as exchange rate changes and global consumer price inflation shock. Consequently, non-oil shocks are the main determinants of the global economic fluctuation. The study leads to a better understanding of the transmission of oil shock and its sources, the interaction between oil and economic indicators and the policy implication due to oil dependency/ intensity.