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Journal of Management Sciences - Volume 3, Issue 1 2016
By Thurai Murugan Nathan, Venus Khim-Sen Liew, Wing-Keung Wong
10.20547/jms.2014.1603103
Keywords: Sectoral outputs, disaggregated energy consumption, ARDL Bound testing, Thailand, economic growth
From an economic perspective, energy-output relationship studies have become increasingly popular in recent times, partly fuelled by a need to understand the effect of energy on production outputs rather than overall GDP. This study dealt with disaggregated energy consumption and outputs of some major economic sectors in Thailand. ARDL bound testing approach was employed to examine the co-integration relationship. The Granger causality test of the aforementioned ARDL framework was done to investigate the corresponding causality effect. Results showed that, from year 1980 to 2010, productivity of most scrutinized industries was highly reliant on crude oil and natural gas. However, coal usage in transportation and agricultural industries can be reduced without affecting productivity. Few recommendations are given thereafter for Thailand to better manage their imported and local energy sources.