Energy consumption, financial development, globalization, and economic growth in Poland: New evidence from an asymmetric analysis

Abstract

This chapter examines the asymmetric impact of globalization, economic growth, and financial development on energy consumption between 1980 and 2015 in Poland, using the nonlinear autoregressive distributed lag bounds and Hatemi-J (2012) asymmetric causality tests. The undertaken research was preceded by current literature review of the economic growth-energy consumption, financial development-energy consumption, and globalization-energy consumption nexus. In the study, we use nine different KOF globalization indices to examine the impact of different types of globalization on energy consumption. In the model which we use financial globalization to indicate globalization was found f-statistic higher than upper critical value. Our results suggest that financial globalization (LNFG) asymmetrically and negatively influences energy consumption (LNEC), and that in financial development positive shocks reduce while negative shocks increase energy consumption. Furthermore, positive shocks in economic growth increase while negative shocks in economic growth reduce energy consumption. A significant unidirectional asymmetric causality was found running from globalization to energy consumption. Bidirectional causality was found running from trade globalization and interpersonal globalization to energy consumption. Positive shocks in financial development cause negative shocks in energy consumption. Positive shocks in energy consumption cause negative shocks in cultural globalization and positive shocks in social globalization. Negative shocks in energy consumption cause negative shocks of information globalization and economic globalization. Democratization and EU membership have made Poland more open to the world. Policymakers should consider, the globalization process has different impacts on energy consumption. © 2022 Elsevier Inc. All rights reserved.