Foreign Direct Investment and Electricity Consumption on Economic Growth: Evidence from South Africa
AbstractThis paper specifies a model in which we investigate the interrelationship of economic growth, electricity consumption and foreign direct investment. We find that foreign direct investment and electricity consumption are only cointegrated when GDP is the dependent variable. With respect to causality, the null hypothesis that electricity consumption (kWh) and foreign direct investment (FDI) do not ‘Granger cause’ GDP is rejected. Similarly, the null hypothesis that GDP and electricity consumption do not ‘Granger cause’ FDI is rejected at the same 5% level of significance. We find that electricity consumption and foreign direct investment Granger cause economic growth.
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Bibliographic InfoArticle provided by Camera di Commercio di Genova in its journal Economia Internazionale / International Economics.
Volume (Year): 62 (2009)
Issue (Month): 2 ()
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More information through EDIRC
ARLD; Toda and Yamamoto Granger Non-causality; South Africa; Augmented VAR;
Find related papers by JEL classification:
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
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