Panel Granger causality between oil consumption and GDP : evidence from BRICS countries
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Date
Authors
Chang, Tsangyao
Gadinabokao, Olorato A.
Gupta, Rangan
Inglesi-Lotz, Roula
Kanniah, Pervan
Simo-Kengne, Beatrice Desiree
Journal Title
Journal ISSN
Volume Title
Publisher
Inderscience
Abstract
This paper examines the causal relationship between oil consumption and economic growth
in the BRICS countries for the period from 1985 to 2011. We employ a panel causality
approach which accounts for both cross-sectional dependency and heterogeneity across
countries. The empirical results support the view that oil consumption and economic growth
are not sensitive to each other for the panel of BRICS countries. Looking at the individual
country results, there is only some evidence for China of a bidirectional causality. The lack of
sensitivity between oil consumption and GDP for the BRICS countries indicates that policies
aiming at reducing the use of crude oil will have minor to no effect on the economic growth
and development of the BRICS countries.
Description
Keywords
Economic growth, Dependency and heterogeneity, Oil consumption, Panel causality test, Brazil, Russia, India, China and South Africa (BRICS)
Sustainable Development Goals
Citation
Chang, T, Gadinabokao, O, Gupta, R, Inglesi-Lotz, R, Kanniah, P & Simo-Kengne, BD 2015, 'Panel granger causality between oil consumption and GDP : evidence from BRICS countries', International Journal of Sustainable Economy, vol. 7, no. 1, pp. 30-41.