This paper applies a newly developed LM unit root test based on residual augmented least squares (RALS) regression under structural break and Bayer–Hanck cointegration approach to explore the integrating properties and to check whether a long run relationship exists among energy demand,...

The two oil shocks of the 1970s reduced the GDP growth rate, and since that period, sudden oil price increases have been considered as a major source of economic slowdown in the world. We thus estimate simple linear regression model (SLRM), dynamic regression model (DRM) and VAR model to...