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The Effects of Electricity Production on Industrial Development and Sustainable Economic Growth: A VAR Analysis for BRICS Countries

Author

Listed:
  • Zhongdong Yu

    (School of Management, GuangZhou University, GuangZhou 510006, China)

  • Wei Liu

    (School of Economics and Management, Zhengzhou Normal University, Zhengzhou 450044, China)

  • Liming Chen

    (College of Finance and Statistics, Hunan University, Changsha 410082, China)

  • Serkan Eti

    (The School of Business, İstanbul Medipol University, İstanbul 34815, Turkey)

  • Hasan Dinçer

    (The School of Business, İstanbul Medipol University, İstanbul 34815, Turkey)

  • Serhat Yüksel

    (The School of Business, İstanbul Medipol University, İstanbul 34815, Turkey)

Abstract

This study aims to evaluate the effect of electricity production on industrial development and sustainable economic growth. In this context, Brazil, Russia, India, China, and South Africa (BRICS), countries which have the highest increase in electricity production in the period of 2000–2018, are included in the scope of this study. Annual data of these variables in the period of 1991–2018 are used and three different models are created by using Vector Auto Regression (VAR) methodology. The findings state that electricity production in BRICS countries has a positive effect on both industrial production and sustainable economic growth. Hence, electricity production needs to be increased for them. For this purpose, it is important to encourage investors with tax advantages, location orientation and financing. Moreover, BRICS countries should give importance to renewable energy investments in order to increase electricity production. These issues have a contributing effect to sustainable economic growth.

Suggested Citation

  • Zhongdong Yu & Wei Liu & Liming Chen & Serkan Eti & Hasan Dinçer & Serhat Yüksel, 2019. "The Effects of Electricity Production on Industrial Development and Sustainable Economic Growth: A VAR Analysis for BRICS Countries," Sustainability, MDPI, vol. 11(21), pages 1-13, October.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:21:p:5895-:d:279577
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    3. Liton Chandra Voumik & Md. Azharul Islam & Abidur Rahaman & Md. Maznur Rahman, 2022. "Emissions of carbon dioxide from electricity production in ASEAN countries: GMM and quantile regression analysis," SN Business & Economics, Springer, vol. 2(9), pages 1-20, September.
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    6. Chang-Hwan Choi & Xuan Zhou & Jung-O Ko, 2023. "Can Human Capital Drive Sustainable International Trade? Evidence from BRICS Countries," Sustainability, MDPI, vol. 16(1), pages 1-11, December.

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