Investigating the Short-Term and Long-Term Causal Relationship between Energy Consumption in the International Transport Sector, International Trade and Economic Growth(Case Study: Selected Islamic Countries of Southwest Asia)

Economic growth, international trade, and energy consumption of the international transport sector are considered as three important variables in the economy of any country, and it is important to examine how they are related. This study in the framework of multivariate panel error correction model (PECM) and co-integration tests and panel causality examines the long-term and short-term relationship between the three variables in selected Islamic countries of Southwest Asia, including Iran, from 2000 to 2017. Pay. Long-term coefficients have been estimated using the fully modified ordinary squared minimum (FMOLS) method and short-term coefficients and causal relationships have been estimated using the generalized method of moments (GMM) method. This study shows that there is a two-way causality between economic growth and international trade in the short and long term. There is a two-way causality between economic growth and energy consumption in the international transport sector in the short but long term. There is a one-way relationship between the energy consumption of the international transport sector and economic growth. There is a two-way causality between trade and energy consumption of the international transport sector in the short run, but in the long run, there is no causal relationship between them.