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An Empirical Study of China's regional GDP and energy consumption

Author: CheShuQin
Tutor: GuoZuo
School: Dongbei University of Finance
Course: Quantitative Economics
Keywords: Economic development Panel Data Unit root test Cointegration test Granger causality Green GDP
CLC: F206
Type: Master's thesis
Year: 2007
Downloads: 706
Quote: 5
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Abstract


China's economic growth to enhance China's comprehensive national strength, but also to the energy bottleneck pressure on the environment and issues such as economic development inevitably encounter. Energy is an important guarantee for economic development, sustainable development of China's economy depends on the supply and consumption of energy. Correctly understand and handle the relationship between the two has significant meaning to alleviate or solve the energy bottleneck problem, keep the economy continued to grow steadily. The study of the relationship between economic growth and energy consumption is very long attracted the attention of economists, scholars use different methods to different studies on the relationship between energy consumption and economic growth of different countries: study The conclusion is different for different countries, and even some of the same country due to the different research methods have also been a different conclusion. In these studies, most researchers use a single time-series data or the cross-sectional data, use of the restricted amount of information can not fully reflect the study of the relationship between variables. Using the newly developed panel data demonstrated a causal relationship between China's economic growth and energy consumption. Panel data combines the time-series and cross-sectional data sequence, increasing the amount of information available, will be more fully reflect the relationship between the variables of the study. Panel data for the study of the causal relationship between the variables, in order to prevent the emergence of spurious regression, the paper first of each variable unit root test, derived variables have the same order of integration, and the use of co-integration test cointegration between the long-run equilibrium relationship between the variables that variable, and finally the use of error correction model on Granger causality test the causal relationship between the variables. China is a developing country, the region's economic structure, resource rich degrees and other economic factors, the region's economic development has a very different economic development showed significant regional. Therefore, in examining the causal relationship between China's economic growth and energy consumption, respectively, for the three regions of eastern, western, central panel data and analyzed, in order to better provide for the region's economic development for the region policy recommendations. The conclusion of the study tells us: there is one-way from energy consumption to GDP, short-term causal relationship between the eastern part of the GDP and energy consumption; while the long term does not exist any causal relationship between the eastern region facing short-term and long-term different development strategies. There is a two-way short-term causal relationship between GDP and energy consumption of the western region and long-term unidirectional causality from GDP to energy consumption. This shows that the western region GDP and energy consumption in the short-term causal relationship to each other, influence each other; the long term, GDP growth is driven by growth in energy consumption in the same direction, the economic development of the western region is also faced with different short-and long-term development strategy. The central region of the energy consumption and GDP does not exist any long-term and short-term causal relationship between the economic development of the central region with greater flexibility. According to the conclusions Finally, given the different development proposals, noting that in order to achieve the overall health of the sustainable development of China's future economic and social development and achieve the strategic goal of building a moderately prosperous society, build China into a comprehensive and harmonious society, \

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CLC: > Economic > Economic planning and management > Management of National Economy > Energy Management
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