Granger Causality Test between Oil Consumption and Gross Domestic Product of China Based on the Provincial Panel Data Analysis

Abstract:

This paper, based on the Provincial Panel Data of 30 provinces during 1995~2010 period, applies the panel unit root, heterogeneous panel co-integration and panel based error correction models to re-investigate co-movement and the causality between oil consumption and GDP. The results show that there is one-way directional causality from energy consumption to GDP in the western area, and one-way causality from GDP to energy consumption in the central area, while no causality between energy consumption and GDP exists in the eastern area.

• Periodical: Applied Mechanics and Materials (Volumes 209-211)
• Pages: 1643-1646
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.209-211.1643
• Online since: October 2012
• Authors: Yan Hong Li
• Keywords: Energy Consumption (EC), Granger Causality Test, Panel Co-Integration, Panel Data, Panel Unit Root

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