Abstract
In modern days, economic growth is energy‐dependent and vice versa. Earlier studies concentrated a bit to analyze the influence of globalization and politico‐administrative factors on the energy consumption‐economic growth nexus in developing economies. The motivation for the current research is to scrutinize the energy consumption‐economic growth nexus while accounting for the influence of globalization and country risk indicators—the politico‐administrative factors in a panel of 4 South Asian countries (Bangladesh, India, Pakistan, and Sri Lanka) during 1980–2018. To check the issues of heterogeneity and cross‐sectional independence, the study employs the pooled mean group estimation method. The investigated results provide a nexus between energy consumption and economic growth where globalization ‐ a long‐run force positively affects this nexus in the long run and negatively in the short run. Besides, the politico‐administrative factors have an adverse impact in the long run and an insignificant effect on this nexus in the short run. The Dumitrescu–Hurlin non‐causality test establishes the feedback hypothesis concerning energy consumption‐economic growth nexus in South Asian economies. The study results remain robust across the dynamic ordinary least square estimator. Therefore, this study suggests sustaining the energy‐growth nexus to properly handle globalization and politico‐administrative and the Covid‐19 pandemic issues through institutional quality. Moreover, the objective‐oriented policies are critical to strengthening the energy‐growth nexus without decaying environmental quality in South Asian countries.