Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Non-Linearity Effect of Energy Consumption on Economic Growth: Panel ASEAN-4 Countries

Jerome Kueh, Josephine Yau, Audrey Liwan, Yong Sze Wei

http://dx.doi.org/10.6007/IJARBSS/v10-i8/7642

Open access

The aim of the study is to investigate the impact of energy consumption on economic growth in ASEAN-4 countries as a whole. In addition, the effect of the non-linearity of the relationship between energy consumption and growth is examined using Threshold Analysis method for the period of 1980 to 2014. Empirical findings indicate that energy consumption has significant positive impact on economic growth in ASEAN-4 countries in the long-run. Furthermore, the non-linearity results show that the impact of the energy consumption on growth become greater when the energy consumption is above the threshold level. This implies that more usage of energy may contribute to the economic growth.