Financial development, energy consumption, and economic growth: Some recent evidence for India. Issue 4 (15th April 2020)

• Record Type: Journal Article
• Authors: Raghutla, Chandrashekar; Chittedi, Krishna Reddy
• Is Part Of: Business strategy and development. Volume 3:Issue 4(2020)
• Page Start: 474
• Page End: 486
• Publication Date: 2020-04-15
• Subjects: causality -- economic growth -- energy consumption -- financial development; Community development -- Periodicals; Sustainable development -- Periodicals; Social responsibility of business -- Periodicals; Economic development -- Periodicals; Social entrepreneurship -- Periodicals; 338.9
• DOI: 10.1002/bsd2.111
• Languages: English
• ISSNs: 2572-3170

Abstract

Abstract: The objective of this study is to investigate the empirical relationship between financial development, energy consumption, and economic growth in India, spanning the time period 1970–2018. The study used ARDL‐bound tests and the VECM method. Results confirm the presence of a long‐term relationship among variables. Results from the Granger causality test show a unidirectional relationship, from economic growth to financial development, in the short‐term. However, in the long‐term, we identify a bidirectional causal relationship between economic growth and energy consumption and energy consumption and financial development. The study concludes that financial development and energy consumption are the key drivers of the economic growth of India.