Examine the Empirical Relationship between Energy Consumption and Industrialization in Bangladesh: Granger Causality Analysis

Authors

  • Md. Hasanur Rahman Comilla University
  • Alfarunnahar Ruma
  • Mohammad Nasir Hossain
  • Rifat Nahrin
  • Shapan Chandra Majumder Comilla University

Abstract

The current study examines the empirical relation between energy consumption and industrialization concerning other macroeconomic variables like as infrastructure, manufacturing, and capital formation with covering the period from 1975 to 2018. The Johansen co-integration estimation asserts the long-run association in this process. Whatever granger causality shows the bidirectional causality between electricity consumption and industrialization. Capital formation and industrialization have the bidirectional causality also. A unidirectional causality exists between oil and industrialization where manufacturing and industrialization have bidirectional causality. The estimated result of the error correction mechanism (ECM) shows the speed of long-run equilibrium at 45% within the time. The ECT has been significant at a 1% level with a pessimistic sign.  The assistances of this attempt ensuring the importance of energy use and energy supervision in the aspect of industrial enlargement with making an allowance for the other macroeconomic indicators.Keywords: Industrialization, Energy, DOLS, Granger CausalityJEL Classifications: O13, 014, P18, Q43DOI: https://doi.org/10.32479/ijeep.10843

Downloads

Download data is not yet available.

Author Biography

Md. Hasanur Rahman, Comilla University

Md. Hasanur Rahman is a MSS research student at department of economics, from Comilla University, Bangladesh. He has published many articles in SCOPUS, ISI Thomson Reuters and ESCI-(accepted) Indexed journals. Areas of interest are international trade, industrial economics, environmental economics, energy economics, macroeconomics and econometrics.

Downloads

Published

2021-04-10

How to Cite

Rahman, M. H., Ruma, A., Hossain, M. N., Nahrin, R., & Majumder, S. C. (2021). Examine the Empirical Relationship between Energy Consumption and Industrialization in Bangladesh: Granger Causality Analysis. International Journal of Energy Economics and Policy, 11(3), 121–129. Retrieved from https://econjournals.com./index.php/ijeep/article/view/10843

Issue

Vol. 11 No. 3 (2021)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.