Causal relationship between oil consumption and economic growth in Ecuador

Se Jun Jin; Seul Ye Lim; Seung Hoon Yoo

doi:10.1080/15567249.2013.790520

Causal relationship between oil consumption and economic growth in Ecuador

Se Jun Jin, Seul Ye Lim, Seung Hoon Yoo

Dept. of Future Energy Convergence

Seoul National University of Science and Technology (SNUST)

Research output: Contribution to journal › Article › peer-review

9 Scopus citations

Abstract

Oil has maintained a dominant form of energy source due to its flexibility and universal strength. This paper attempts to investigate the causal relationship between oil consumption and economic growth in Ecuador where oil consumption and real GDP have been rapidly increased in recent years. To this end, the paper employs Ecuadorian annual data covering the period 1965-2011. Tests for unit roots, co-integration, and Granger-causality based on the error-correction models are presented. The overall results reveal that there is unidirectional causality running from economic growth to oil consumption without any feedback effects. Thus, oil conservation policies can be initiated without deteriorating economic side-effects in Ecuador.

Original language	English
Pages (from-to)	782-787
Number of pages	6
Journal	Energy Sources, Part B: Economics, Planning and Policy
Volume	11
Issue number	9
DOIs	https://doi.org/10.1080/15567249.2013.790520
State	Published - 20 Sep 2016

Keywords

Co-integration
Economic causality
Ecuador
Growth
Oil consumption
Unit root

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1080/15567249.2013.790520

Cite this

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title = "Causal relationship between oil consumption and economic growth in Ecuador",

abstract = "Oil has maintained a dominant form of energy source due to its flexibility and universal strength. This paper attempts to investigate the causal relationship between oil consumption and economic growth in Ecuador where oil consumption and real GDP have been rapidly increased in recent years. To this end, the paper employs Ecuadorian annual data covering the period 1965-2011. Tests for unit roots, co-integration, and Granger-causality based on the error-correction models are presented. The overall results reveal that there is unidirectional causality running from economic growth to oil consumption without any feedback effects. Thus, oil conservation policies can be initiated without deteriorating economic side-effects in Ecuador.",

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AU - Jin, Se Jun

AU - Lim, Seul Ye

AU - Yoo, Seung Hoon

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N2 - Oil has maintained a dominant form of energy source due to its flexibility and universal strength. This paper attempts to investigate the causal relationship between oil consumption and economic growth in Ecuador where oil consumption and real GDP have been rapidly increased in recent years. To this end, the paper employs Ecuadorian annual data covering the period 1965-2011. Tests for unit roots, co-integration, and Granger-causality based on the error-correction models are presented. The overall results reveal that there is unidirectional causality running from economic growth to oil consumption without any feedback effects. Thus, oil conservation policies can be initiated without deteriorating economic side-effects in Ecuador.

AB - Oil has maintained a dominant form of energy source due to its flexibility and universal strength. This paper attempts to investigate the causal relationship between oil consumption and economic growth in Ecuador where oil consumption and real GDP have been rapidly increased in recent years. To this end, the paper employs Ecuadorian annual data covering the period 1965-2011. Tests for unit roots, co-integration, and Granger-causality based on the error-correction models are presented. The overall results reveal that there is unidirectional causality running from economic growth to oil consumption without any feedback effects. Thus, oil conservation policies can be initiated without deteriorating economic side-effects in Ecuador.

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KW - Economic causality

KW - Ecuador

KW - Growth

KW - Oil consumption

KW - Unit root

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Causal relationship between oil consumption and economic growth in Ecuador

Abstract

Keywords

UN SDGs

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