Is Here a Causal Relationship between China's Oil Consumption and Economic Growth? - An Analysis Based on Long and Short Granger Causality Tests
In the past 20 years, domestic and foreign scholars have carried out a lot of research on the relationship between energy and economic growth, and defined the causal relationship and direction between oil consumption and economic growth, which has important theoretical and practical significance.However, the current academic circles for whether the oil consumption and economic growth there is a certain causal relationship between the issue, has yet to reach a consensus conclusion. The lack of distinction between short-term and long-term equilibrium is an important reason for the inconsistent empirical conclusion. This paper intends to use China's data from 1980 to 2006 to test that changes in the growth pattern are the causes of changes in the long-term equilibrium relationship between oil consumption and economic growth. In the long run, there is a two-way causal relationship between oil consumption and economic growth. Between 1993 and 2006, there was a short-term Granger causality between oil consumption and economic growth.
