Date of Publication

7-12-2022

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Statistics Major in Actuarial Science

Subject Categories

Mathematics

College

College of Science

Department/Unit

Mathematics and Statistics Department

Thesis Advisor

Marcus Jude P. San Pedro

Defense Panel Chair

Angelo M. Alberto

Defense Panel Member

Eduardo D. Cruz

Abstract/Summary

The Philippines is heavily dependent on importing energy sources to meet the country’s energy demand, making energy consumption and economic growth sensitive to exchange rate fluctuations. Based on the economic model developed by Wang, Yu, Zhang, and Chen (2021), this study used a cointegration model to analyze the effect of real effective exchange rate (REER) on energy consumption and economic growth. Following the Cobb-Douglas production function, the variables capital stock and labor input were also added to the model. Using Philippine annual data from 1981 to 2019, this study confirmed that the effect of total energy consumption on economic growth follows a linear cointegration represented by the vector error correction model (VECM) when REER is added to the model. Meanwhile, the model using only coal energy consumption follows a two-regime self-exciting threshold autoregressive (SETAR) model when REER is included.

Abstract Format

html

Language

English

Format

Electronic

Physical Description

33 leaves

Keywords

Econometrics; Foreign exchange rates; Energy consumption--Philippines; Economic development--Philippines

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Embargo Period

7-14-2022

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