The Relationship between Energy Consumption, Gross Domestic Production and Foregin Direct Investment in Developing Selected Countries

Abstract

The Aims of this research, Examining the Relationship Between Energy Consumption, Gross Domestic Production and Foregin Direct Investment in Developing Selected Countries by using Satatic Panel data, Vector Auto Regression (Optimum Rank Length, Johanson Test, Impulse response function test and Variance decomposition test) and also Vector Error Correction Model Techniques For Estimating. Thus, 1980-2013 Statistical Data Have Been Used To The Relationship Between Energy Consumption and Gross Domestic Production and Foregin Direct Investment, In a Theoretical and Experimental Frame. The Results Confidently Prove That, The Gross Domestic Production and Foregin Direct Investment Has Positive and Significant Impacts on Energy Consumption in The High Per capita Income, Lower Middle Per capita Income, Low Per capita Income Developing Countries. Also, Results Show That There is a Positive and Significant Effect Between Gross Domestic Production on Energy Consumption, There is an Adverse and Significant Effect Between Foregin Direct Investment on Energy Consumption in Upper Middle Per capita Income Developing Countries. Results johansen test indicate that, there is one relationship cointegration on long-term in Developing Selected Countries. Based on the findings Error correction coefficient in Vector Error Correction Model, Emphasize that on there one relationship cointegration in long-term for Developing Selected Countries.