Energy-growth conundrum in energy exporting and importing countries: Evidence from heterogeneous panel methods robust to cross-sectional dependence

- This article uses the panel methods for investigating the energy-growth nexus.
- We take the sample of net energy exporting and net energy importing countries.
- We find that energy consumption is an important input in both samples.
- Our results are robust to cross sectional dependence and heterogeneity.
- We suggest that the policy options should be different for the different countries.

This article uses the panel methods for energy exporting and importing countries that discuss the heterogeneity and cross sectional dependence in investigating the linkages between energy consumption and economic growth. The findings of the study suggest that the energy consumption is an important input not only in the energy importing but also in energy exporting countries. Furthermore, the results of the present paper suggest that the policy options should be different for the different countries in the back drop of heterogeneous slope coefficients.