Energy consumption, economic growth, foreign direct investment and globalization causality nexus in OECD countries: A symbolic transfer entropy analysis

In this paper, we investigate the validity and usefulness of the symbolic transfer entropy (STE) test for longitudinal data by examining causality relationships among foreign direct investment, energy consumption, globalization and economic growth respectively, between the periods 1970-2015 using Organization for Economic Co-operation and Development (OECD) countries as a case study. Our empirical results are in line with the existing literature and empirical outcomes generated using other forms of causality approaches. Thus, we are of the opinion that the STE causality approach is suitable approach for longitudinal panel data.