The Effect of Corruption on Energy Intensity and the Analysis of Outlying Countries in East Asia
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With annual data for 2000, 2005, and 2010 from seventy-two countries, we explore the possibility that differences in corruption are causal to differentials in energy intensity as a proxy for total primary energy consumption per dollar of GDP. The pooled OLS estimates reject the null hypothesis that corruption does not affect energy intensity. It is also evident from the Spearman’s rank order correlation coefficient that corruption and energy intensity are positively dependent on one another, implying that higher corruption correlates with greater energy intensity. The pooled OLS estimates also suggest that the harmful effects of corruption on energy intensity is greater in the three core countries in East Asia(i.e., China, Japan, and South Korea) than in other countries.
Abstract
With annual data for 2000, 2005, and 2010 from seventy-two countries, we explore the possibility that differences in corruption are causal to differentials in energy intensity as a proxy for total primary energy consumption per dollar of GDP. The pooled OLS estimates reject the null hypothesis that corruption does not affect energy intensity. It is also evident from the Spearman’s rank order correlation coefficient that corruption and energy intensity are positively dependent on one another, implying that higher corruption correlates with greater energy intensity. The pooled OLS estimates also suggest that the harmful effects of corruption on energy intensity is greater in the three core countries in East Asia(i.e., China, Japan, and South Korea) than in other countries.
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