Energy consumption and human development: Evidence from a panel cointegration and error correction model

In this paper we investigate the co-movement and the causality relationship between energy consumption as well as electricity consumption and the HDI (human development index) using as a proxy of human well-being and by including energy prices as an additional variable, in fifteen developing countries for the period 1988 to 2008. Recently developed tests for the panel unit root, heterogeneous panel cointegration, and panel-based error correction models are employed.

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