Is Trade Openness the Reason of High Energy Demand in China?

Authors

  • Atif Khan Jadoon Department of Economics, University of the Punjab, Pakistan
  • Hafiz Muhammad Qasim Department of Economics, Lahore Leads University, Lahore, Punjab, Pakistan.
  • Ambreen Sarwar Department of Economics, University of the Punjab, Pakistan
  • Rehan Ahmed Khan College of statistical and actuarial sciences, University of the Punjab, Pakistan
  • Muhammad Ali Institute of Business Administration, University of the Punjab, Pakistan

Abstract

The present study aims to examine the short-run and long-run impact of China's trade liberalization policies on its energy demand over the period from 1980 to 2018. The results of Autoregressive Distributed Lag approach of co-integration show that energy consumption significantly increases as a result of trade openness and increase in real Gross Domestic Product (GDP). The results of the granger causality test also confirm the unidirectional causality running from trade openness and real GDP to energy demand. The results of the study have an important implication because if China wants to continue its trade liberalization policies then it must increase its energy production.

Keywords: Energy Consumption, Gross Domestic Product, Trade Openness, China, Time Series

JEL Classifications: C22, F15, L98, Q43

DOI: https://doi.org/10.32479/ijeep.11160

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Author Biographies

Atif Khan Jadoon, Department of Economics, University of the Punjab, Pakistan

Assistant Professor, Department of Economics, University of the Punjab, Pakistan

Hafiz Muhammad Qasim, Department of Economics, Lahore Leads University, Lahore, Punjab, Pakistan.

Lecturer Department of Economics, Lahore Leads University, and section editor (Economics) Leads Journal of Humanities and Social Sciences

Ambreen Sarwar, Department of Economics, University of the Punjab, Pakistan

Lecturer, Department of Economics, University of the Punjab, Pakistan

Rehan Ahmed Khan, College of statistical and actuarial sciences, University of the Punjab, Pakistan

Associate Professor, College of statistical and actuarial sciences, University of the Punjab, Pakistan

Muhammad Ali, Institute of Business Administration, University of the Punjab, Pakistan

Assistant Professor, Institute of Business Administration, University of the Punjab, Pakistan

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Published

2021-06-08

How to Cite

Jadoon, A. K., Qasim, H. M., Sarwar, A., Khan, R. A., & Ali, M. (2021). Is Trade Openness the Reason of High Energy Demand in China?. International Journal of Energy Economics and Policy, 11(4), 479–485. Retrieved from https://www.econjournals.com/index.php/ijeep/article/view/11160

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