Is there any relationship between energy and TFP (total factor productivity)? A panel cointegration approach for Italian regions
|Title||Is there any relationship between energy and TFP (total factor productivity)? A panel cointegration approach for Italian regions|
|Publication Type||Journal Article|
|Year of Publication||2014|
|Authors||Ladu, MG, Meleddu, M|
The aim of this work is to examine the long run relationship between TFP (total factor productivity) and energy consumption in Italy from 1996 to 2008 at a regional level. Differently from previous studies, TFP is employed as a measure of economic growth and therefore of technological change. Dynamic Panel estimation technique is used to investigate whether a connection between TFP and energy use exists and its direction. Results show a bi-directional causality for the Italian regions implying that those regions characterized by a higher TFP would invest more in research rather than in energy intensive activities, improving in that way the use of scarce resources and favoring a sustainable growth.
|Keywords||dynamic panel, energy use, total factor productivity|