The Relationship between Energy Consumption Growths and Economic Growth in China

Qiang Hou

Abstract


Energy plays an important role in the economic development. Hence many studies have attempted to test for causality between energy and economic growth. This paper investigates the causal relationship between energy consumption and economic growth in China. By applying techniques of ADF, co-integration, Hsiao’s Granger causality, the paper analyzes this relationship, and the results infer that economic growth granger causes energy consumption and energy consumption granger causes economic growth respectively.


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International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)

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