Research On Economic Growth Effect Of Energy Cooperation Between China And South Asia

Energy is the material basis of human survival,the lifeblood of a country’s economy,and plays a supporting role in national economic development.Energy plays an increasingly important role in the process of industrialization and urbanization of various countries and has become an important guarantee for sustainable social stability.With the continuous development of economy,South Asian countries are increasingly dependent on external energy.Similarly,China,as a major energy demander,also faces the problem of energy supply security.Although China and South Asia are in a disadvantageous position in terms of traditional energy reserves,China’s abundant new energy reserves,excellent development technology,abundant capital,plus India’s seaport transportation advantage,Pakistan’s geographical advantage of being adjacent to oil-rich areas and South Asia’s huge potential for new energy development will increase the employment of both sides if energy cooperation is established between the two sides.Promoting consumption to drive economic growth;It can also expand energy supply to a large extent,reduce social production costs,optimize energy structure and further promote economic growth of both sides.Therefore,how to better promote the energy cooperation between China and South Asia,ensure the energy supply security of the cooperating countries and further promote the economic growth of the countries has become the focus of both sides.First of all,this paper takes China and South Asia as the research region to study the impact of energy cooperation on economic growth of both sides.Using qualitative and quantitative research methods to analyze the current situation of energy cooperation between China and South Asia,it is found that:(1)the cooperation mode is relatively single.(2)The scope of energy cooperation between the two sides is wide,but the depth of industrial chain cooperation is insufficient.(3)In terms of economic growth,China’s GDP and South Asia’s GDP both achieved positive growth,but China’s GDP level was much higher than that of South Asia.Secondly,it makes a theoretical analysis of the mechanism of energy cooperation on economic growth from the aspects of energy trade and energy efficiency.On this basis,it uses relevant data of China and South Asia from 2000 to 2019 to construct intra-industry trade index,energy efficiency index and energy cooperation index.The dynamic influence of energy cooperation between China and South Asia on economic growth of China and South Asia is analyzed empirically.The empirical analysis shows that:(1)China’s GDP is a significant one-way Granger causality of China’s energy cooperation index.That is,the past value of the energy cooperation index between China and South Asia cannot predict the future GDP of China,but the GDP of China can predict the future value of the energy cooperation index between China and South Asia.(2)There is a significant two-way Granger causality between the GDP of South Asia and the South Asia energy cooperation index.The past value of South Asia and China Energy Cooperation Index can predict the GDP of South Asia,and the past value of South Asia’s domestic production can also predict the future value of South Asia and China energy cooperation index.This shows that the energy cooperation between China and South Asia has a great impact on the economic growth of South Asia,but a relatively small impact on China’s economic growth.(3)Impulse response results show that bilateral energy cooperation has positive effects on the economies of both China and South Asia,and the total cumulative impulse response of energy cooperation to China’s economic growth is greater than that of South Asia.(4)The contribution of energy cooperation to the economic growth effect of China and South Asia is significant,and the contribution of energy cooperation to South Asia is higher.In the 7th issue,the contribution of the energy cooperation index between China and South Asia to China’s economic growth was the highest 32.91%,and in the 8th issue,the average contribution was about 25.15%.The energy cooperation index between South Asia and China has a maximum contribution of 43.18% to the economic growth of South Asia in the 8th issue,and an average contribution of 37.22% in the 8th issue.Finally,on the basis of the research conclusions,in order to further strengthen the energy cooperation between China and South Asia,and make use of the economic growth effect generated by energy cooperation to drive the economic growth of both sides,the author puts forward relevant countermeasures and suggestions to strengthen the energy cooperation between China and South Asia to promote economic growth:(1)strengthen exchanges and cooperation to create a good cooperation atmosphere;(2)Exploring diversified energy cooperation modes to enhance cooperation willingness;(3)Expanding the scale of energy trade and the scope of energy cooperation;(4)Strengthen technical exchanges to improve energy efficiency.The innovation of this paper lies in:(1)research object innovation.The research focuses on the energy cooperation between China and South Asia,and provides reference for future research on energy cooperation between China and South Asia.(2)Research framework innovation.The function mechanism of energy cooperation on economic growth is elaborated from the perspectives of energy trade,energy efficiency,employment scale,production cost and energy structure,and then the economic growth effect of energy cooperation is evaluated and analyzed by VAR model.The deficiencies of this study are as follows:(1)Few foreign literatures are used directly.(2)In the empirical part,there are other reasonable empirical methods,and the results of different methods may be different.