Energy–Finance–Growth Nexus in ASEAN-5 Countries: An ARDL Bounds Test Approach
Abstract
:1. Introduction
2. Literature Review
2.1. The Nexus between Energy Consumption and Financial Development
2.2. Empirical Evidence from Preceding Studies
3. Materials and Methods
3.1. Data and Variables
3.2. Test of the Stationarity of Data
3.3. Test of the Effect of a Structural Break in Cointegration
3.4. Test of Cointegration—ARDL Bounds Test Approach
4. Results and Discussions
5. Conclusions
Author Contributions
Funding
Conflicts of Interest
References
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Country | Variables EC | FD | GDPPC |
---|---|---|---|
Malaysia | 36.5653 *** | 25.45166 *** | 17.04503 *** |
Indonesia | 32.57413 *** | 29.58952 *** | 14.50024 *** |
Philippines | 46.67442 *** | 14.14112 *** | 71.78095 *** |
Singapore | 5.675828 *** | 2.469036 * | 9.513005 *** |
Thailand | 49.66331 *** | 4.515376 *** | 24.24333 *** |
Levin, Lin and Chu | ADF Test | |||
---|---|---|---|---|
Null: Unit root (Assumes Common Unit Root Process) | Null: Unit root (Assumes Individual Unit Root Process) | |||
Test Statistics | Probability | Test Statistics | Probability | |
Malaysia | −3.10953 | 0.0009 | 11.3337 | 0.0786 |
Indonesia | −2.70441 | 0.0034 | 10.3520 | 0.1106 |
Philippines | 3.22481 | 0.9994 | 2.07530 | 0.9126 |
Singapore | −2.38512 | 0.0085 | 4.09117 | 0.6643 |
Thailand | −3.23710 | 0.0006 | 9.20032 | 0.1626 |
Country | Variables | Test Statistics | Order of Integration | |
---|---|---|---|---|
Malaysia | EC | Level | −3.538905 | I (1) |
First difference | −8.066572 ** | |||
FD | Level | −4.487476 | I (1) | |
First difference | −3.946545 *** | |||
GDPPC | Level | −2.735251 | I (1) | |
First difference | −7.503437 *** | |||
Indonesia | EC | Level | −4.924191 | I (1) |
First difference | −4.859985 *** | |||
FD | Level | −7.681760 *** | I (0) | |
First difference | −5.122355 | |||
GDPPC | Level | −3.089788 *** | I (0) | |
First difference | −6.420811 | |||
Philippines | EC | Level | −2.522312 | I (1) |
First difference | −5.759279 *** | |||
FD | Level | −2.987915 | I (1) | |
First difference | −7.296979 *** | |||
GDPPC | Level | −1.635966 | I (1) | |
First difference | −7.807071 * | |||
Singapore | EC | Level | −3.832414 ** | I (0) |
First difference | −5.806963 | |||
FD | Level | −3.792653 *** | I (0) | |
First difference | 0.083147 | |||
GDPPC | Level | −4.975770 ** | I (0) | |
First difference | −6.545626 | |||
Thailand | EC | Level | −3.860627 | I (1) |
First difference | −6.135177 *** | |||
FD | Level | 0.000112 *** | I (0) | |
First difference | −5.576288 | |||
GDPPC | Level | −2.777161 | I (1) | |
First difference | −5.494244 ** |
Country | Model | Test Statistics | Critical Value | Reject H0 | |
---|---|---|---|---|---|
1% | 5% | ||||
Malaysia | C | −3.88 | −5.44 | −4.92 | No |
C/T | −4.29 | −5.80 | −5.29 | ||
C/S | −3.99 | −5.97 | −5.50 | ||
Indonesia | C | −3.36 | −5.44 | −4.92 | No |
C/T | −5.20 | −5.80 | −5.29 | ||
C/S | −4.68 | −5.97 | −5.50 | ||
Philippines | C | −3.42 | −5.44 | −4.92 | No |
C/T | −3.85 | −5.80 | −5.29 | ||
C/S | −3.83 | −5.97 | −5.50 | ||
Singapore | C | −4.99 | −5.44 | −4.92 | No |
C/T | −4.43 | −5.80 | −5.29 | ||
C/S | −5.27 | −5.97 | −5.50 | ||
Thailand | C | −3.13 | −5.44 | −4.92 | No |
C/T | −3.92 | −5.80 | −5.29 | ||
C/S | −5.67 | −5.97 | −5.50 |
Countries | Models | F | DW Value |
---|---|---|---|
Malaysia | (1,0,1) | 3.6167 | 1.79 |
Indonesia | (4,0,2) | 2.1368 | 2.16 |
Philippines | (1,3,1) | 7.2371 | 1.99 |
Singapore | (4,4,3) | 7.5909 | 1.94 |
Thailand | (4,4,4) | 5.2977 | 2.25 |
I (0) | I (1) | ||
Critical Value at 1% | 4.13 | 4.38 | |
Critical Value at 5% | 3.1 | 3.87 | |
Critical Value at 10% | 2.63 | 3.35 |
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Mahi, M.; Phoong, S.W.; Ismail, I.; Isa, C.R. Energy–Finance–Growth Nexus in ASEAN-5 Countries: An ARDL Bounds Test Approach. Sustainability 2020, 12, 5. https://doi.org/10.3390/su12010005
Mahi M, Phoong SW, Ismail I, Isa CR. Energy–Finance–Growth Nexus in ASEAN-5 Countries: An ARDL Bounds Test Approach. Sustainability. 2020; 12(1):5. https://doi.org/10.3390/su12010005
Chicago/Turabian StyleMahi, Masnun, Seuk Wai Phoong, Izlin Ismail, and Che Ruhana Isa. 2020. "Energy–Finance–Growth Nexus in ASEAN-5 Countries: An ARDL Bounds Test Approach" Sustainability 12, no. 1: 5. https://doi.org/10.3390/su12010005