The role of globalization in the relationship between energy consumption and economic growth

Document Type : Original Article

Authors

1 Assistant Professor, Department of Economic Sciences, Faculty of Humanities, Ayatollah Boroujerdi University, Boroujard, Iran

2 Master's degree, Faculty of Economics, Allameh Tabatabai University, Tehran, Iran

Abstract

Energy consumption plays an important role in economic growth and development of countries, on the other hand, increasing economic growth requires more energy as a driving force for the production of goods and services. Therefore, it is necessary to know the factors affecting the energy-growth relationship. The aim of the present study is to investigate the impact of globalization on the energy-growth relationship during the period of 1980-2021. The results of the generalized moments in 39 developing countries in the economic growth model showed that energy consumption plays a significant role in increasing economic growth. The findings also showed that economic, social and political globalization directly increases economic growth. On the other hand, the results of the non-linear effect showed that the squares 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 moderates the effect of energy in increasing economic growth. Also, for the energy consumption model, it was found that economic growth significantly increases energy consumption. The results also showed that economic, social and political globalization have a negative and significant effect on energy consumption, and the results of the non-linear effect showed that the square of economic, social and political globalization has a negative relationship with energy consumption. It was also found that economic and social globalization moderates economic growth to increase energy consumption while political globalization does not moderate economic growth to energy consumption.

Keywords

References

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