Exploring the Relationship Between Energy Consumption and GDP: Evidence from Bangladesh

Md Atiqul Islam, Md. Al Zabir Hassan Mithen

University of Rajshahi, Bangladesh

This research examines the causal relationship between per capita gross domestic product (PCGDP) and per capita energy consumption (PCEC) in Bangladesh over the period of 1971 to 2023. The ARDL bound testing approach indicates a statistically significant positive relationship between PCGDP and PCEC. The results also reveal that there is a one directional linkage running through PCEC to PCGDP. This indicates that an increase in energy consumption has a direct impact on GDP growth. This suggests that rather than energy conservation, priority to generate energy generation as a means of achieving higher GDP is needed for Bangladesh.

Article link: https://www.asianinstituteofresearch.org/JEBarchives/exploring-the-relationship-between-energy-consumption-and-gdp%3A-evidence-from-bangladesh