Dynamics of financial development, trade openness, technological innovation and energy intensity: Evidence from Bangladesh

By Xiongfeng Pan, M. Uddin, Cuicui Han, Xianyou Pan. Energy, 2019

196 citations recorded by the source corpus.

Abstract Using annual time series data for the period 1976 to 2014, this study attempts to empirically examine the contemporaneous causal linkages among financial development, trade openness, technological innovation and energy intensity in Bangladesh. Directed acyclic graphs (DAG) technique and structural vector autoregression (SVAR) model are applied to yield inference on the dynamic causal relationships among the variables. The DAG results confirm that financial development, trade openness, economic growth and technological innovation influence energy intensity where financial development, trade openness and technological innovation have influence on economic growth. The results of forecast error variance decomposition from SVAR model verify the fact that economic growth has greater impact on energy intensity in short-run, but with the extension of forecast period, the promotion effect of it gradually decreases. On the other hand, the promotion effect of trade openness on energy intensity gradually increases over time and become highest in long-run. Technological innovation also plays an important role in promoting energy intensity where it is influenced by financial development and trade openness.

Subfields: Economics and Econometrics, Pollution, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/22c5d0e80ed7b1fefa97932a592784f08dca8915

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Citations in the corpus

Impact of technological innovation on energy efficiency in industry 4.0 era: Moderation of shadow economy in sustainable development (2021, background): “As opposed to Jin et al. (2018), Pan et al. (2019a) used patent applications as a measure of technological innovation and analyzed the nexus of environmental regulation, energy efficiency and technological innovation in 30 Chinese provinces.”
Decomposing Scale and Technique Effects of Financial Development and Foreign Direct Investment on Renewable Energy Consumption (2022, background): “Applying directed acyclic graphs and structural vector (SVAR) models, Pan et al. (2019) noted that trade openness, financial development and technological innovation add to energy intensity.”