Bulletin of Energy Economics, vol.4, no.1, pp.70-80, 2015 (Refereed Journals of Other Institutions)
The main objective of this study is to investigate the short-run and long-run estimates and causal relationship between energy consumption, trade and economic growth for Belgium in three different multivariate models in which economic growth, energy consumption and trade are dependent variables, respectively. This study confirms the existence of long-run relationship between the analyzed variables in the three models. In addition, the short-run and long-run elasticities are statistically significant in all the proposed models. Furthermore, the Granger causality test shows the evidence of feedback hypothesis between economic growth and energy consumption, between economic growth and trade, and between energy consumption and trade both in the short-run and long-run. Thus, Belgium should promote energy consumption and trade through appropriate policies to obtain sustainable long-run economic growth.