Causality between energy consumption and economic growth in Malaysia / Muhamad Hasbullah Roslan

The main purpose of this study is to find out the relationship or causality between energy consumption and economic growth in Malaysia from 1980 to 2014. This study is using time series data that be collected from Malaysian Energy Information Hub. The indepedent variable that be used is gas consumption, electricity consumption and crude oil consumption for dependent variable is GDP per capita that be used. The analysis of the data started with log all the variable after that follow by unit root test to test for the stationary and then applying cointegration test. The next analysis of data is Toda-Yamamoto Approach to solve the problem of invalid asymptotic critical value. Lastly granger to know how much of the current Y can be explained by past values of X and then to see whether adding lagged values of X can improve the explanation. The result founds that no causality between energy consumption consists gas, oil and electricity consumption and economic growth in Malaysia.