Energy consumption, economic growth, foreign direct investment and globalization causality nexus in OECD countries: a symbolic transfer entropy analysis

Abstract

In this paper, we investigate the validity and usefulness of the symbolic transfer entropy (STE) test for longitudinal data by examining causality relationships among foreign direct investment, energy consumption, globalization and economic growth respectively, between the periods 1970-2015 using Organization for Economic Co-operation and Development (OECD) countries as a case study. Also, a comparison to validate or contrast with other existing studies results generated using other forms of causality test is given. Our findings suggest that the STE causality test is suitable approach for our OECD panel of countries.