Citation

Al-Mulali, Usama and Solarin, Sakiru Adebola and Ozturk, Ilhan (2016) Biofuel energy consumption-economic growth relationship: an empirical investigation of Brazil. Biofuels, Bioproducts and Biorefining, 10 (6). pp. 753-775. ISSN 1932-104X; eISSN: 1932-1031

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Abstract

This study investigates the influence of biofuel energy consumption on Brazil's economic growth during the period 1980–2012 by employing the Autoregressive Distributed Lag (ARDL) approach and the vector error correction model (VECM) Granger causality. The results revealed two structural breaks during the early 1980s due to the Latin American debt crisis as well as the early 2000s due to the worries related to the increasing global spreads. Moreover, it was found that economic growth, biofuel energy consumption, capital, urbanization, and globalization are co-integrated. Additionally, it was found that biofuel energy consumption, capital, urbanization, and globalization increase Brazil's economic growth in the short run and in the long run. However, the two structural breaks have a significant negative influence on economic growth. The vector error correction model Granger causality revealed a feedback causal relationship between all the variables (with the exception of capital). However, a unidirectional causality was concluded from capital to economic growth, biofuel energy consumption, urbanization, and globalization. From the results of this study, a number of policy implications were provided.

Item Type:	Article
Subjects:	H Social Sciences > HB Economic theory. Demography
Divisions:	Faculty of Business (FOB)
Depositing User:	Ms Suzilawati Abu Samah
Date Deposited:	12 Dec 2017 16:56
Last Modified:	12 Dec 2017 16:56
URII:	http://shdl.mmu.edu.my/id/eprint/6623

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