Exploring the role of globalization in the relationship between Energy consumption and economic growth

This paper examines the effect of energy consumption, globalization, and economic growth.This study revisitsthe economic growth–energy consumption thesis by investigating the impact of economic, social, andpolitical globalization on the economic growth–energy consumption nexus in a Generalized Method ofMoments of ۳۹ emerging economies for the period ۱۹۸۰–۲۰۲۳. The findings also showed that economic,social and political globalization directly boosts economic growth. On the other hand, the results of thenonlinear effect showed that the square of economic, social and political globalization have a positive andsignificant effect on economic growth. It was also found that economic, social and political globalizationmoderated the impact of energy on increasing economic growth. Also, for the energy consumption model, itwas found that economic growth significantly increased energy consumption. The results also showed thateconomic, social and political globalization has a negative and significant effect on energy consumption andthe results of the nonlinear effect showed that the square of economic, social and political globalization has anegative relationship with energy consumption. It also found that economic and social globalizationmoderated economic growth to increase energy consumption while political globalization did not moderateeconomic growth for energy consumption.

Keywords:

Globalization , Economic Growth , Energy Consumption , GMM