Energy Consumption, Economic Growth and Trade Balance in East Asia: A Panel Data Approach

Abstract

The purpose of this work is to study the effects energy consumption, economic growth and trade balance in the East Asian countries. Using a panel data analysis in the period over 1996-2015, the study analyzes based on the methods of fixed, random effects, and pooled ordinary least squares. The data were collected from World Development Indicators, Department of Statistics in relevant countries used in the study. Our results demonstrate that energy consumption has negatively affected trade balance while economic growth that can negatively affect the balance of trade but insignificant. Further, the prime factors that can significantly impact trade balance are exports, exchange rates and development level. Both exports and exchange rates have positive and significant impacted on trade balance. Finally, a country with a higher level of domestic income will certainly perform a higher level of trade balance.

Oil price shocks against stock return of oil- and gas-related firms in the economic depression: A new evidence from a copula approach

“…According the General Statistics Office (GSO) of Vietnam, the net importing value of crude oil in 2019 reached roughly 3.64 million tons, up from 1.3 million tons a year earlier. It supported the economic growth at approximately 7.02; 7.08 percent for 2018, 2019, meanwhile the average growth of 7 percent since 1986 (Tran et al, 2020).…”

“…Nowadays, many countries have targeted the use of clean energy in order to obtain sustainable development and environmental protection (Tran et al, 2020). In this context, Kocaarslan and Soytas (2019) indicated a negative effect on stock returns of clean energy due to increasing in oil price could be found.…”

“…Over the past 20 years, Vietnam has been known as one of the largest oil and natural gas producers in Association of Southeast Asian Nations. Unfortunately, industrialization and economic reforms have significantly requested more energy consumption in the country (Tran et al, 2020). According the General Statistics Office (GSO) of Vietnam, the net importing value of crude oil in 2019 reached roughly 3.64 million tons, up from 1.3 million tons a year earlier.…”

Real Effective Exchange Rate, Broad Money Supply, and Trade Balance in Vietnam: An Empirical Analysis from Bounds Test to a Cointegration Approach

“…Numerous studies have given many theoretical frameworks related to trade balance in the world. This includes the theories of Le and Ishida (2016); Nguyen et al (2017); Tran et al (2020), . Through the research, the following approaches are established: elasticity approach, absorption approach and monetary approach.…”

“…However, according to other views, the depreciation of VND does not necessarily solve the problem of trade balance or will put pressure on commodity prices, inflation, capital inflows, etc. Although there have been many empirical studies and policy making reports, the discussion on how changes in exchange rates will improve the trade balance (Le and Ishida, 2016;Nguyen et al, 2017;Tran et al, 2020). However, there is still much disagreement about how the effect of exchange rate adjustments has an impact on the trade balance.…”