The Links between Energy Consumption, Financial Development, and Economic Growth in Lebanon: Evidence from Cointegration with Unknown Structural Breaks

Abosedra, Salah; Shahbaz, Muhammad; Sbia, Rashid

doi:10.1155/2015/965825

Cited by 48 publications

(31 citation statements)

References 78 publications

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“…In the context of finance and energy, many empirical studies, like Sadorsky [6] for 22 emerging countries, Xu [25] for China, Shahbaz et al [26] for Indonesia, Coban and Topcu [27] for EU countries, Islam et al [28] for Malaysia, Ozturk and Acaravci [29] for Turkey, Tang and Tan [30] for Malaysia, Salah et al [31] for Lebanon found the positive impact of financial development on energy consumption.…”

Section: Theoretical and Empirical Literature Reviewmentioning

confidence: 99%

The Impact of Financial Development on Energy Consumption: Evidence from an Oil-Rich Economy

et al. 2018

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This paper examines the relationship between energy consumption, financial development, and economic growth in an oil-rich economy-Azerbaijan-employing cointegration techniques to the data ranging from 1992 to 2015. The results confirm the existence of a long-run relationship among the variables. Also, we find that there is a positive and statistically significant impact of financial development and economic growth on energy consumption in the long-run. The positive and statistically significant coefficient of financial development and decreasing volatility in the proxy for financial development over time can be considered as improvements in the financial system. Estimation results show that a 1% increase in financial development, proxied by the private credit indicator, and economic development increases energy consumption by 0.19% and 0.12%, respectively. The positive and significant impact of financial development on energy consumption on the backdrop of relatively cheaper energy prices due to rich oil and gas resources, should be considered by policymakers in their energy use, financial development, and economic growth related decisions.

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Section: Theoretical and Empirical Literature Reviewmentioning

confidence: 99%

The Impact of Financial Development on Energy Consumption: Evidence from an Oil-Rich Economy

et al. 2018

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“…The study found a bidirectional causal link between Þ nancial development as measured by stock market indicators and energy consumption in the case of Algeria. Abosedra et al (2015) investigated the relationship between Þ nancial development and energy consumption for Lebanon and found a bidirectional causal link between the two variables. The study applied the Vector Error Correction based Granger-causality test on monthly data over the period 2000 to 2010.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Unfortunately, the majority of the empirical studies that have been conducted on the relationship between Þ nancial development and energy consumption are mainly concentrated in the Asian and Latin-American countries (see Abosedra et al, 2015;Furuoka, 2015;Kakar, 2016;Sbia et al, 2017). Very few empirical studies on this subject exist for the sub-Saharan African countries.…”

Section: Introductionmentioning

confidence: 99%

Energy consumption and financial development in South Africa

Odhiambo

2019

Ekon. pregl. (Online)

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This paper examines the dynamic relationship between energy consumption and financial development in South Africa during the period 1980-2013. In order to address the omission of variable bias, the study has included economic growth as an intermittent variable between financial development and energy consumption. Unlike some previous studies, this study uses three proxies for financial development: i) domestic credit to the private sector as a percentage of GDP as a proxy for financial institutions’ depth; ii) bank credit to bank deposits as a proxy for financial institutions’ stability; and iii) bank lending-deposit spread as a proxy for financial institutions’ efficiency. Using the ARDL bounds testing approach to cointegration and Granger-causality test, the obtained results show that there is a distinct long-run unidirectional causal flow from financial development to energy consumption in South Africa. This applies irrespective of which proxy has been used to measure the level of financial development. The study also finds that there is a long-run unidirectional causality from economic growth to energy consumption, and a unidirectional causality from economic growth to financial development when bank lending-deposit interest rates spread is used as a proxy for financial development. This, therefore, implies that energy consumption in South Africa is largely driven by the growth-led financial development in the long run.

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“…2013), (Rasoulinezhad and Saboori, 2018), (Tiba and Frikha, 2018). iii) neutrality hypothesis; the fact that the share of energy consumption in total output is very small infers that there is no causal relationship between energy consumption and economic growth (Menegaki, 2011), (Menyah and Wolde-Rufael, 2010), (Abosedra, Shahbaz and Sbia, 2015), (Acaravci and Ozturk, 2010), (Odhiambo, 2009). iv) the protection hypothesis; one-way causality relation from economic growth to energy consumption, and the increase in real GDP leads to an increase in energy consumption (Gurgul and Lach, 2012), (Sadorsky, 2009), (Esso, 2010), (Apergis and Payne, 2009).…”

Section: Energy Consumption and Economic Growthmentioning

confidence: 99%

OECD Ülkelerinin Enerji Tüketimi, Ticaret Açıklığı ve Ekonomik Büyümesi Üzerine Ampirik Bir Analiz

Gövdeli¹

2019

Cankiri Karatekin Universitesi Iktisadi Ve Idari Bilimler Fakultesi Dergisi

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This study analyzes the relationship of causality between energy consumption, trade openness and economic growth for 24 OECD countries. In the study undertaken during 1971 to 2014, the cross section dependency and the homogeneity of slope coefficients were investigated. The heterogeneity of slope coefficients was determined under the cross-sectional dependence which is the prerequisite for the causality test of Kónya (2006). According to the results of panel causality analysis between energy consumption and trade openness to economic growth, it was found that unidirectional causality relationship between energy consumption and trade openness to economic growth in Canada, Chile, Iceland, Spain and Sweden. Policy makers should be targeted to increase economic growth by addressing the policies of openness and energy consumption in OECD countries.

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The Links between Energy Consumption, Financial Development, and Economic Growth in Lebanon: Evidence from Cointegration with Unknown Structural Breaks

Cited by 48 publications

References 78 publications

The Impact of Financial Development on Energy Consumption: Evidence from an Oil-Rich Economy

The Impact of Financial Development on Energy Consumption: Evidence from an Oil-Rich Economy

Energy consumption and financial development in South Africa

OECD Ülkelerinin Enerji Tüketimi, Ticaret Açıklığı ve Ekonomik Büyümesi Üzerine Ampirik Bir Analiz

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