Exploring the role of globalization in the relationship between Energy consumption and economic growth
Keywords:
Globalization, Economic Growth, GMM , Energy Consumption,Abstract
This paper examines the effect of energy consumption, globalization, and economic growth.This study revisits the economic growth–energy consumption thesis by investigating the impact of economic, social, and political globalization on the economic growth–energy consumption nexus in a Generalized Method of Moments of 39 emerging economies for the period 1980–2023. The findings also showed that economic, social and political globalization directly boosts economic growth. On the other hand, the results of the nonlinear effect showed that the square of economic, social and political globalization have a positive and significant effect on economic growth. It was also found that economic, social and political globalization moderated the impact of energy on increasing economic growth. Also, for the energy consumption model, it was found that economic growth significantly increased energy consumption. The results also showed that economic, social and political globalization has a negative and significant effect on energy consumption and the results of the nonlinear effect showed that the square of economic, social and political globalization has a negative relationship with energy consumption. It also found that economic and social globalization moderated economic growth to increase energy consumption while political globalization did not moderate economic growth for energy consumption.
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