Energy Consumption and Growth in Romania: Evidence from a Panel Error Correction Model

Authors

  • Nicholas Apergis University of Piraeus
  • Dan Danuletiu “1 Decembrie 1918” University of Alba Iulia

Abstract

This study examines the relationship between energy consumption and economic growth for the economy of Romania over the period 2000-2011 within a multivariate framework. A cointegration and error correction model is employed to infer the causal relationship. Cointegration test reveals a long-run equilibrium relationship between real GDP, energy consumption, the labor force, and real gross fixed capital formation with the respective coefficients positive and statistically significant. The Granger-causality results indicate both short-run and long-run causality from energy consumption to economic growth which supports the growth hypothesis.

Keywords: Energy consumption; Growth; Cointegration tests; Granger-causality

JEL Classifications: C23; Q43

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Author Biographies

Nicholas Apergis, University of Piraeus

Professor, Banking & Financial Management

Dan Danuletiu, “1 Decembrie 1918” University of Alba Iulia

Associate Professor, Economics and Business Administration  

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Published

2012-09-19

How to Cite

Apergis, N., & Danuletiu, D. (2012). Energy Consumption and Growth in Romania: Evidence from a Panel Error Correction Model. International Journal of Energy Economics and Policy, 2(4), 348–356. Retrieved from https://www.econjournals.com/index.php/ijeep/article/view/316

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