Abstract
This study examines the relationship between energy consumption, financial development and economic growth for ASEAN-5 countries, namely Malaysia, Indonesia, the Philippines, Singapore and Thailand, over the period from 1980 to 2017. Finance–growth and energy–growth relationships have been well researched; however, the energy–finance–growth nexus is an equally important but less explored area. Our Auto Regressive Distributed Lags (ARDL) bounds test for cointegration results suggests that the variables tend to move together in the long run for all countries, apart from Indonesia. Our study also considers the effect of a structural break due to financial crisis and confirms that the break does not affect the long-term relationship among the variables; in other words, the financial crisis does not affect the energy–finance–growth nexus. Hence, considering the consistency of energy consumption, the importance of the energy sector must not be undermined, and appropriate energy policies are instrumental in maintaining a well-managed financial sector for sustainable economic growth.
Highlights
Energy is vital to human societies and plays a critical role in economic growth as an indispensable factor of production [1]
This paper investigates the long-term relationship between energy consumption, financial development and economic growth in ASEAN-5, namely, Malaysia, Indonesia, the Philippines, Singapore and Thailand
We examine the long-run relationship between energy consumption, financial development and economic growth in ASEAN-5 countries during the period of 1980–2017
Summary
Energy is vital to human societies and plays a critical role in economic growth as an indispensable factor of production [1]. Energy is seen as a significant constituent in the progression of industrialization and technology [3]. The financial sector creates a socioeconomic environment conducive to innovation and technological advancement that stimulates economic growth [4]. A properly developed and prudentially managed financial sector allows the allocation of adequate financial resources to the energy sector and maintains a healthy balance between energy production and consumption [5]. This is conducive to increasing savings, and the efficient transition from saving to investment fosters capital accumulation and long-term economic growth [6]
Sign-in/Register to view highlights & summary 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.
