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Energy Consumption, Finance and Growth: The Role of Urbanization and Industrialization in South Africa

Author

Listed:
  • Hasan Gungor

    (Department of Economics, Eastern Mediterranean University, North Cyprus,)

  • Angela Uzoamaka Simon

    (Department of Economics, Eastern Mediterranean University, North Cyprus)

Abstract

The paper investigates the relationship between energy consumption, financial development (FD), economic growth, industrialization and urbanization in the case of South Africa for the period of 1970-2014. The study employs Johansen co-integration test and vector error correction model with granger causality test as estimation techniques. The results confirm that there is a long-run equilibrium relationship between these variables in case of South Africa. More so, urbanization, FD, and industrialization are positively correlated to the energy consumption in the long run. The results obtained also shows the long run bi-directional causality between industrialization and energy utilization, FD and energy consumption and also FD and industrialization.

Suggested Citation

  • Hasan Gungor & Angela Uzoamaka Simon, 2017. "Energy Consumption, Finance and Growth: The Role of Urbanization and Industrialization in South Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 7(3), pages 268-276.
    • Handle: RePEc:eco:journ2:2017-03-32
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    9. Anouba Acha Arnaud & Huang Dechun & Haihua Ying & Koffi Yao Stephane Landry, 2023. "The Impact of urbanization on banking development: Evidence from the West African Economic and Monetary Union (WAEMU)," International Journal of Science and Business, IJSAB International, vol. 22(1), pages 1-13.
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    More about this item

    Keywords

    Energy; Finance; Growth; Time Series;
    All these keywords.

    JEL classification:

    • B26 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Financial Economics
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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