THE CAUSAL RELATIONSHIP BETWEEN GDP, ENERGY CONSUMPTION, POPULATION, AND OIL PRICE: EVIDENCE FROM VIETNAM

Main Article Content

Ngoc Thuy Ho
Wann Yih Wu
Adriana Amaya Rivas
Phuoc Thien Nguyen

Keywords

Energy Consumption, Gross Domestic Product, Population, Oil Price, Granger Causality Test

Abstract

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.

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