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Causal Dynamics between Energy Consumption, ICT, FDI, and Economic Growth: Case Study of 13 MENA Countries

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  • Kais Saidi

    (University of Sfax)

  • Mounir Ben Mbarek

    (University of Sfax)

  • Mounira Amamri

    (University of Sfax)

Abstract

This paper aims to examine the relationship between energy consumption, information technology and communication (ICT), foreign direct investment (FDI), and economic growth using dynamic panel data of 13 MENA countries over the period 1990–2012. Recently developed tests for panel unit-root and co-integration tests are applied, in order to test the Granger causality. Econometric analysis results indicate that there are a bidirectional relationship between energy consumption and economic growth which is also known as the feedback hypothesis, but, there is a bidirectional relationship from ICT to economic growth in both the short run and the long run. However, the results support the existence of a unidirectional causality from economic growth to FDI. This study shows the importance of energy consumption and ITC in determining economic growth.

Suggested Citation

  • Kais Saidi & Mounir Ben Mbarek & Mounira Amamri, 2018. "Causal Dynamics between Energy Consumption, ICT, FDI, and Economic Growth: Case Study of 13 MENA Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(1), pages 228-238, March.
    • Handle: RePEc:spr:jknowl:v:9:y:2018:i:1:d:10.1007_s13132-015-0337-5
    DOI: 10.1007/s13132-015-0337-5
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