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Foreign Direct Investment and Electricity Consumption on Economic Growth: Evidence from South Africa

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  • Dube, Smile

    ()
    (California State University)

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    Abstract

    This 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 Info

    Article provided by Camera di Commercio di Genova in its journal Economia Internazionale / International Economics.

    Volume (Year): 62 (2009)
    Issue (Month): 2 ()
    Pages: 175-200

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    Handle: RePEc:ris:ecoint:0009

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    Keywords: ARLD; Toda and Yamamoto Granger Non-causality; South Africa; Augmented VAR;

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    Cited by:
    1. Richard Cebula & J. Clark, 2012. "Lessons from the experience of OECD nations on macroeconomic growth and economic freedom, 2004–2008," International Review of Economics, Springer, vol. 59(3), pages 231-243, September.
    2. Sbia, Rashid & Shahbaz, Muhammad & Hamdi, Helmi, 2014. "A contribution of foreign direct investment, clean energy, trade openness, carbon emissions and economic growth to energy demand in UAE," Economic Modelling, Elsevier, vol. 36(C), pages 191-197.
    3. Richard Cebula & Franklin Mixon, 2012. "The Impact of Fiscal and Other Economic Freedoms on Economic Growth: An Empirical Analysis," International Advances in Economic Research, Springer, vol. 18(2), pages 139-149, May.

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