Vol. 15 No. 2 (2025): Vol 15 Iss 2 Year 2025
Articles

Is energy consumption really matter for economic growth in Bangladesh? An ARDL approach

Wazahat Ullah.
Department of Economics, Varendra University, Rajshahi -6204, Bangladesh
Hasin Israque Aornob
Department of Economics, Varendra University, Rajshahi -6204, Bangladesh
Published June 30, 2025
Keywords
  • Energy, Growth, Bound Test, Causal Relationship, Bangladesh.
How to Cite
Wazahat Ullah., & Hasin Israque Aornob. (2025). Is energy consumption really matter for economic growth in Bangladesh? An ARDL approach. Journal of Management and Science, 15(2), 49-56. Retrieved from https://jmseleyon.com/index.php/jms/article/view/853

Abstract

Despite the great interest in the energy-growth nexus over the world, the energy-growth nexus is always overlooked by the prior researchers of Bangladesh. Using the data set of the period 1979-2014, the study injects new insights into the scant knowledge about the nexus between the two aggregated variables in the country. To do so, the study investigates both long-run and short-run causal relationship applying a developed method of bound testing (ARDL) and dynamic VEC model, respectively. The estimation results find strong long-run relationship between the energy consumption and economic growth and in the short-run energy consumption has significant impact on economic growth in Bangladesh. But the VECM Granger causality test finds no causality running in either direction. Therefore, the study suggests that energy conservation policy should be revised as growth is inevitable without energy in Bangladesh.

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