Please use this identifier to cite or link to this item:
Title: Energy consumption in the GCC countries: evidence on persistence
Authors: Caporale, GM
Gil-Alana, LA
Monge, M
Keywords: fractional integration;energy consumption;GCC countries
Issue Date: 11-Dec-2019
Publisher: Scholink
Citation: Caporale, GM., Gil-Alana, L.A. and Monge, M. (2020) 'Energy consumption in the GCC countries: evidence on persistence', International Business and Economic Studies, 2 (1), pp. 1 - 15. Available at: (Accessed: 06 Jan 2020).
Abstract: Copyright © The Author(s). This paper examines the statistical properties of energy consumption in the GCC countries applying fractional integration methods to annual data from 1980 to 2014. The results indicate that both the raw and the logged series exhibit a (statistically significant) linear time trend in the case of Bahrain, Oman and Qatar, and the raw series only in the case of Saudi Arabia. Mean reversion (and thus only transitory effects of shocks) is found in the case of Bahrain for both the raw and logged data, and in Qatar for the logged series. In the remaining cases, the unit root hypothesis (implying permanent effects of shocks) cannot be rejected except for the logged data in Saudi Arabia, since the order of integration of the series is found to be statistically higher than 1 in that country. The implication of these findings is that in the case of Bahrain and Qatar exogenous shocks to energy consumption have transitory effects, which disappear in the long run without the need for policy action, whilst the permanent nature of the effects of shocks elsewhere means that appropriate policies have to be designed to restore equilibrium.
Description: A version of this paper is available as CESifo Working Paper No. 7470.
ISSN: 2640-9852
Appears in Collections:Dept of Economics and Finance Research Papers

Files in This Item:
File Description SizeFormat 
FullText.pdf583.3 kBAdobe PDFView/Open

This item is licensed under a Creative Commons License Creative Commons