Abstract
Explain the relationship between energy consumption and economic growth can play a significant role in setting and adjustment of policies on energy sector. Given the close relationship between Energy consumption and economic growth in selected countries, determination of quality of the relationship between these two variables helps effectively to explain of policies of the energy sector. This paper studies the causality relationship between energy consumption and GDP in 7 Asian countries, using panel cointegration, and panel-based error correction models from annual data covering the period of 1980 to 2010. The results of this study show that there are significant and positive relationship between economic growth and energy consumption in these selected countries.