The aim of this study is to investigate the Causal Relationship between Energy Con-sumption and Gross Domestic Product in the long-run in the case of United Kingdom, Sweden, United States and Canada. Gross Fixed Capital Formation and Labor Force data used in the study as extra variables. Annual data used range from 1960 to 2015 for all countries except from United Kingdom that data range from 1970 to 2015. Johansen Cointegration tests conducted and their result shows one cointegrated equation per country. On the long-run, Granger Causality testing indicates that the only existing causal relationship between energy and output appears on United Kingdom where there is a unidirectional causal relationship from Gross Domestic Product (GDP) to Energy Consumption (EC). On Sweden, United States and Canada there is no evidence for the presence of a causal relationship between Energy and GDP.
Collections
Show Collections