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Recently, energy production in China fell behind energy consumption. This poses important challenges for the rapidly growing Chinese economy. As a consequence, the causal relationship between energy consumption and GDP is an important empirical issue. This paper examines Granger causality between energy consumption and GDP in China using province-level data. The current paper extends the Granger causality...
Existing studies examining the Granger causality relationship between energy consumption and GDP use a panel of countries but implicitly assume that the panels are homogeneous. This paper extends the Granger causality relationship between energy consumption and GDP by taking into account panel heterogeneity. For this purpose, we use a large panel of 79 countries for the period 1980–2007. Specifically,...
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