Energy Consumption and Sectoral Outputs in Laos : ARDL Bound Testing Approach

• Main Authors: Venus, Khim-Sen Liew, Thurai Murugan, Nathan
• Format: Proceeding
• Language: English
• Published: 2012
• Subjects: HG Finance
• Online Access: http://ir.unimas.my/id/eprint/29579/1/Energy.pdf; http://ir.unimas.my/id/eprint/29579/

This study investigates the relationship between different types of energy consumption and outputs of the main economic sectors in Laos, where energy shortage is a major challenge faced by the economy. Our empirical analysis suggests that coal consumption and the outputs of the agricultural, services, transportation, and industrial sectors are cointegrated in the long-run. The industrial outputs and electricity consumption are co-integrated in the long-run as well. At the same time, the Granger causality of ARDL framework has been employed to identify the causality effect among the variables under studied. The causality direction shows different causality effect running from the sectoral outputs towards different types of energy. Based on the causality results, few recommendations have been suggested to organise the energy more effectively within the sectors in Laos to overcome energy shortage.