Cointegration, error-correction, and the relationship between GDP and energy: The case of South Korea and Singapore

Yong U. Glasure, Aie Rie Lee

Research output: Contribution to journalArticle

235 Scopus citations

Abstract

This paper examines the causality issue between energy consumption and GDP for South Korea and Singapore, with the aid of cointegration and error-correction modeling. Results of the cointegration and error-correction models indicate bidirectional causality between GDP and energy consumption for both South Korea and Singapore. However, results of the standard Granger causality tests show no causal relationship between GDP and energy consumption for South Korea and unidirectional causal relationship from energy consumption to GDP for Singapore.

Original languageEnglish
Pages (from-to)17-25
Number of pages9
JournalResource and Energy Economics
Volume20
Issue number1
DOIs
StatePublished - Mar 1998

Keywords

  • Causality between GDP and energy
  • Cointegration
  • Unit roots
  • Vector error correction model (VECM)

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