Energy Consumption and Economic Growth: Empirical perspective Asian Development Countries

Abstract

This study examines the influence of energy consumption and economic growth in Asian countries. The analysis in this research was carried out using panel data with the simultaneous equation method.  This article will analyses energy consumption and economic growth from perspective fiscal, household and finance. Research data between 2003-2022 in Asian countries (Bahrain, Bangladesh, Cambodian, China, India, Indonesia, Iran, Jordan, Kyrgyz Republic, Lebanon, Malaysia, Nepal, Oman, Pakistan, Philippines, Qatar, Tajikistan, Thailand, United Arab Emirates and Vietnam) comes from the World Development Indicator, World Bank. The simultaneous equation method was chosen to provide more comprehensive results in conducting complete research and interpretation. The results of the study provide economic growth, household expenditure, inflation, military expenditure and total greenhouse have a significant effect, while manufacturing does not have a significant effect on energy consumption. Then, government debt, domestic credit and manufacturing have a significant effect, but energy consumption and inflation do not have a significant effect on economic growth. Energy consumption can support economic growth by increasing energy needs from the careful and appropriate use of energy sources. Controlled inflation ensures that households obtain sufficient energy supplies for production needs. Government debt is still a stimulus for state revenue sources for overall economic development as a form of financing encouragement that emphasizes the importance of economic growth targets.