Chapter Four - The impacts of China’s effect and globalization on the augmented energy–nexus: evidence in four aggregated regions

Abstract

This chapter provides a comparative analysis of China’s spillover effects and globalization impact on the energy–growth nexus in four world regions: America (North and South); Europe and Central Asia; Asia Pacific; and Africa and the Middle East. To perform comparable results at those macrolevels, the aggregation of data takes an essential role, as well as the followed methodology. In this chapter, two alternatives to measure world globalization have been tested. By using the same autoregressive distributed lag approach, the results reveal that China has impacts on the energy–growth nexus worldwide, except in the case of America. Additionally, globalization has been revealed to have long-run impacts on the energy–growth nexus. In consequence it seems that countries should not be indifferent to China’s energy policies. In addition, globalization related policies should not be avoided due to the lack of short-run results.