DOI: 10.36347/sjebm.2022.v09i02.003

Pages: 43-51

This empirical study examines the Toda and Yamamoto’s Granger causality test and the Johansen cointegration approach to find a long run causal relationship between energy consumption and economic growth for the period of 1971 to 2015 using a case study of Myanmar. The results show that there is a one-way causal relationship between economic growth and energy consumption in Myanmar. As a result, the government of Myanmar needs to take measures to save fuel and protect the environment by transferring energy from unsustainable sources to other sources. Additionally, Myanmar has a unidirectional causal relationship from energy consumption, gross domestic product growth, foreign direct investment, and population growth to renewable energy consumption in both the short and long run.