Understanding the Bidirectional Relationship Between Energy Security and Economic Growth in Major Energy-Consuming Countries

This study examines the impact of energy security risk on the economic growth rate of the world’s 74 largest energy-consuming countries. The Energy Security Risk Index is employed to assess national vulnerability to fluctuations in energy security risk over a specified period. To investigate the empirical relationship between energy security risk and economic growth, the analysis utilizes a balanced panel dataset spanning from 1980 to 2025 and applies a series of econometric techniques, including cross-section dependence tests, unit root tests, Pedroni’s residual cointegration test, pooled mean group estimation, and a heterogeneous panel causality test. The empirical findings confirm the presence of a statistically significant causal relationship running from energy security risk to economic growth (LESR → GDPG) at the aggregate panel level. In advanced economies, energy security risk is found to constrain economic growth. Conversely, in developed economies, the results indicate that energy security risk exerts a positive and statistically significant effect on economic growth, which may be attributable to energy-related investments that drive structural transformation. These findings carry important implications for the global community, given that energy continues to serve as the lifeblood of modern production systems.