Title: Dynamics of energy consumption, financial development, trade openness and economic growth in India: an autoregressive distributed lag bounds cointegration approach

Authors: Harishankar Vidyarthi; Santosh Kumar Tiwari

Addresses: Institute of Public Enterprise, Shamirpet Campus, Hyderabad, 500101, Telangana, India ' Indian Institute of Management Amritsar, Punjab Institute of Technology Building, Inside Government Polytechnic Campus, Polytechnic Road Amritsar, Punjab 143105, India

Abstract: The study examines the dynamics between energy consumption, growth, trade openness, and financial development using multivariate ARDL bounds testing approach to cointegration approach for India during 1971-2018. The findings confirm long-run equilibrium relationship among underlying variables. Estimated income elasticity indicates that 1% rise in energy consumption per capita leads to 2.9220% increase in GDP per capita. Further, study confirms improvement in energy access, financial development and trade openness may enhance economic growth for India in long run.

Keywords: energy consumption; economic growth; ARDL bounds test; financial development; India.

DOI: 10.1504/IJEPEE.2024.142462

International Journal of Economic Policy in Emerging Economies, 2024 Vol.20 No.3/4, pp.370 - 382

Received: 19 Oct 2019
Accepted: 28 Oct 2020
Published online: 04 Nov 2024 *

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