economies
Review
The ARDL Method in the Energy-Growth Nexus
Field; Best Implementation Strategies
Angeliki N. Menegaki
Department of Economics & Management of Tourist and Culture Units, Agricultural University of Athens,
33100 Amfissa, Greece; amenegaki@aua.gr
Received: 7 August 2019; Accepted: 14 October 2019; Published: 18 October 2019
Abstract:
A vast number of the energy-growth nexus researchers, as well as other “X-variable-growth
nexus” studies, such as for example the tourism-growth nexus, the environment-growth nexus or
the food-growth nexus have used the autoregressive distributed lag model (ARDL) bounds test
approach for cointegration testing. Their research papers rarely include all the ARDL procedure
steps in a detailed way and thus they leave other researchers confused with the series of steps that
must be followed and the best implementation paradigms so that they not allow any obscure aspects.
This paper is a comprehensive review that suggests the steps that need to be taken before the ARDL
procedure takes place as well as the steps that should be taken afterward with respect to causality
investigation and robust analysis.
