A Dynamic Causality Study between Electricity Consumption and Economic Growth for Global Panel: Evidence from 76 Countries
Journal Title: Asian Economic and Financial Review - Year 2012, Vol 2, Issue 1
Abstract
This paper empirically examines the dynamic causal relationships between electricity consumption and economic growth for five different panels (namely high income, upper middle income, lower middle income, low income based on World Bank income classification and global) using time series data from 1960 to 2008. Three panel unit root tests results support that both the variables are integrated of order 1 for all panels except low income panel. Only the variable economic growth is integrated of order 1 for low income panel. The Kao and Johansen Fisher panel conintegration tests results support that both the variables are cointegrated for high income, upper middle income and global panels but for lower middle income and low income panels are not cointegrated. Bidirectional causality between economic growth and electricity consumption both in the short-run and long-run is found for high income, upper middle income and global panels from the Granger causality test results. Unidirectional short-run causality is found from economic growth to electricity consumption for lower middle income panel and no causal relationship is found for low income panel. It is found that the long-run elasticity of economic growth with respect to electricity consumption is higher for high income, upper middle income and for global panels indicates that over times higher electricity consumption gives rise to more economic growth in these panels.
Authors and Affiliations
Md. Sharif Hossain| Department of Economic Engineering, Faculty of Economics, Kyushu University, Japan, Chikayoshi Saeki| Department of Economic Engineering, Faculty of Economics, Kyushu University, Japan
Keywords
Related Articles
- EP ID EP1734
- DOI -
- Views 581
- Downloads 38
PATTERN AND SOURCES OF GROWTH OF THE VIETNAM ECONOMY: A DEVIATION FROM PROPORTIONAL GROWTH ANALYSIS
The purpose of this paper is to conduct a deviation from proportional growth (DPG) analysis for the Vietnamese economy over the period of 1996-2007. This aims to determine the pattern and sources of growth of the economy...
A Dynamic Causality Study between Electricity Consumption and Economic Growth for Global Panel: Evidence from 76 Countries
This paper empirically examines the dynamic causal relationships between electricity consumption and economic growth for five different panels (namely high income, upper middle income, lower middle income, low income bas...
MONETARY POLICY SHOCKS AND EXCHANGE RATE VOLATILITY IN NIGERIA
This paper analysed the effects of monetary policy shocks using changes in various monetary policy instruments on exchange rate volatility in Nigeria. This paper investigates the relationship between exchange rate volati...
EFFECTS OF EXCHANGE RATE ARRANGEMENTS ON TRADE COOPERATION IN BRICS COUNTRIES
This paper investigated the effects of imposed exchange rate arrangements on trade volume of BRICS countries. This study examined emerging economies, were consists of Brazil, Russia, India, China, and South Africa during...
OIL PRICE AND EXCHANGE RATE IN MALAYSIA: A TIME-FREQUENCY ANALYSIS
The study analyzed the Granger-causal relationship in the time-frequency framework between return series of real oil price (ROP) and real effective exchange rate (REER) for Malaysia. In doing so, study relied on time-fre...