Sustainable Energy Indicators for Integration of Thailand Economy with the fame of One Belt One Road Initiative

Abstract

The objective of this research was to examine the linkages among energy indicators for sustainable development (EISD), Thailand's economy, and One Belt One Road initiative (OBORI). Unit roots test, Johansen cointegration, Vector Error Correction Model (further-VECM), and Granger causality were used to analyze in this study. The energy data of Thailand from 2001 to 2018 year were gathered. The 11 factors were used in the analysis: Gross Domestic Product (GDP), EISD (Household energy use (HEU), Total Final Energy Consumption per capita (FCPC), Total Final Energy Consumption per GDP (FCPG), Total Primary Energy Supply per capita (PSPC), Total Primary Energy Supply per GDP (PSPG), Fuel shares in energy (FSIE), CO2 emissions per capita (CEPC), CO2 emissions per GDP (CEPG)), Foreign Direct Investment in Thailand (FDI), and China Direct Investment in Thailand (CDIIT). The findings revealed that GDP was likely to have a long-run correlation with CEPC, CEPG, FCPG, PSPC, HEU, and FDI because the initial coefficient value of the connection equation was negative; nevertheless, the probability value was minor. Because of the little amount of data used, the software was unable to investigate the relationships between all energy variables and GDP. As a consequence, the factors were identified using a stepwise regression technique. Although the causality test found only CEPG and FCPG as being related to HEU and GDP, which were subsequently passed on to CDIIT, the short-run link has a significant impact on the relationship between FDI and GDP.