Advanced Research Journal of Banking, Economics and Finance ISSN: 1273-2109, Vol. 1 (1), pp. 001-017 .  © Advanced Scholars Journals 

Full length Research paper

Energy consumption and gross domestic product in the Philippines: an application of maximum entropy bootstrap framework

Kenneth Barroga* Agustina Tan-Cruz²

*Department of Science and Technology Bajada, Davao City, Philippines

University of Southeastern PhilippinesObrero, Davao City, Philippines

*Corresponding Author E-mail: [email protected]

Accepted 28 July, 2017

Abstract 

We utilize the most extreme entropy bootstrap (MEB) structure to give persuading proof on the vitality utilization (EC) and GDP nexus in the vicinity of 1975 and 2010 in the Philippines. We additionally play out a cointegration examination and Granger causality trial of the information to outline the upsides of MEB approach. This paper indicates more precise derivation in contrast with customary speculation tests in view of asymptotic hypothesis. Without utilizing MEB, the consequence of causality is exceptionally delicate to a little example size and day and age picked that made the outcomes conflicting. Consequently, MEB system is powerful to day and age picked and even in a little example estimate. The investigation demonstrates no proof of a causal connection amongst EC and GDP in the Philippines. The discoveries accentuate the way that the Philippines is a less created nation and overwhelmingly agrarian-based; in this way, vitality subordinate.

Keywords: bootstrap, cointegration, energy consumption, GDP, Granger causality, highest density region, maximum entropy bootstrap.