Financial Development, Economic Growth, and Energy Consumption Nexus: A Survey Literature

Ali Matar

Abstract


This paper explores the several hypotheses supported by the causal relationship between economic growth, financial development, FDI, electricity consumption, and energy consumption along with a survey of the empirical studies. This survey centers on variables selected, econometric approaches, country coverage, various methodologies, and empirical results. The results are indeed mixed across the 103 studies in the two previous tables across more than 100 countries reported. The results of the specific studies surveyed show that 59% supported the unidirectional hypothesis; 34% the bidirectional hypothesis; and 7% the neutrality (non causality) hypothesis.

 

Keywords: Energy consumption, Economic growth, Granger-causality, Financial development,

Electricity consumption.


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