Open AccessTHE CAUSAL RELATIONSHIP BETWEEN GDP, ENERGY CONSUMPTION, POPULATION, AND OIL PRICE: EVIDENCE FROM VIETNAM
Author(s) -
Ngoc Thuy Ho,
Wann Yih Wu,
Adriana A. Amaya Rivas,
Phuoc Thien Nguyen
Publication year - 2019
Publication title -
humanities and social sciences reviews
Language(s) - English
Resource type - Journals
ISSN - 2395-6518
DOI - 10.18510/hssr.2019.7211
Subject(s) - granger causality , gross domestic product , economics , causality (physics) , population , consumption (sociology) , econometrics , energy consumption , unit root test , population growth , novelty , cointegration , macroeconomics , psychology , demography , engineering , social psychology , social science , physics , quantum mechanics , sociology , electrical engineering
Purpose of this study: This study aims to examine the relationship between energy consumption, gross domestic product, and population for the period of 1985-2015.
Methodology: The research questions for this study are as follows: (1) What is the association among energy consumption, GDP, population, and oil price? (2) Which suggestions can be provided on the basis of the research findings? Unit root test, co-integration test, VECM model, and Granger causality are employed to analyze the association among the aforementioned variables.
Main Findings: Firstly, the results show the existence of co-integration among the variables. By employing the Granger causality, the research findings demonstrate a unidirectional causality running from population to energy consumption, a unidirectional causality running from energy consumption to gross domestic product, and a unidirectional causality running from population to gross domestic product.
Implications: With these results, it is suggested that Vietnam should promote the growth of the population and the energy policies to generate economic growth.
Novelty: To the best of our knowledge, this study extends the scarce literature that provides empirical findings regarding this issue.