Abstract
This article examines the existence of a long-run relationship between energy intensity, trade openness, structure of the economy and FDI inflows in India from 1973 to 2013 using auto regressive distributive lag (ARDL) bounds test methodology. The results indicate that (a) there is a long-run cointegration among the analysed variables and (b) an increase in trade openness, share of services in gross domestic product (GDP) and share of FDI in domestic investments results in lowering energy intensity. The study also finds that the magnitude of impact of the share of industry in increasing energy intensity in India outweighs the combined energy intensity lowering impact of trade openness, share of services and share of FDI. The study validates tenets of the theory of heterogeneity of firms in international trade and pitches for including ‘energy intensity’ as a policy parameter in promoting ‘energy-frugal’ technologies via Make-in-India initiative, trade and FDI policies.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
