Open AccessDo gross domestic product changes have asymmetric effects on India’s energy use?
Author(s) -
Manzoor Ahmad,
Zia Ullah Khan,
Shehzad Khan
Publication year - 2017
Publication title -
journal of applied economics and business studies
Language(s) - English
Resource type - Journals
eISSN - 2663-693X
pISSN - 2523-2614
DOI - 10.34260/jaebs.111
Subject(s) - gross domestic product , distributed lag , linkage (software) , context (archaeology) , economics , autoregressive model , econometrics , lag , product (mathematics) , energy intensity , energy (signal processing) , macroeconomics , mathematics , geography , statistics , computer science , chemistry , geometry , computer network , biochemistry , archaeology , gene
The existing literature on the linkage between Gross Domestic Product (GDP) and energy use in both industrialized and developing economies usually assumes that the impacts of gross domestic product changes are symmetric. In this study, we utilized nonlinear autoregressive distributed lag (NARDL) model and test whether or not the effect of variations in the gross domestic product on energy use is symmetric or asymmetric from the context of India. Using time series data over 1971-2014, the findings depict that the change in the gross domestic product has a symmetric effect on energy use both in short-run and the long-run. Our conclusions infer that there is no asymmetrical association between GDP and energy use, leading to support the symmetric impact of GDP on energy use.