EXAMINING THE RELATIONSHIP BETWEEN ELECTRICITY CONSUMPTION, FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH IN ASEAN COUNTRIES: EVIDENCE FROM A BAYESIAN ANALYSIS

The literature has suggested that financial development and electricity consumption are key determinants of economic growth. However, existing studies usually was applied the frequentist inference, which is an outdated estimator. By applying Bayesian approach via Metropolis-Hasting Gibbs samplers as MCMC methods, study aims to re-examine impact on growth in ASEAN+6 countries from 1980 2016. obtained outcome shows both strong positive There a uni-directional causality running energy consumption, supported Conversation hypothesis. Based empirical result, several policy implications for emerging countries, nations, particular.Keywords: Financial development; Energy consumption; Economic growth; Bayesian; ASEAN countries.JEL Classifications: F43, O13, O47, Q42, Q43.DOI: https://doi.org/10.32479/ijeep.10642