The Role of Natural Gas Consumption and Trade in Tunisia’s Output
AbstractThis paper examines the impact of natural gas consumption, real gross fixed capital formation and trade on the real GDP in case of Tunisia over the period of 1980-2010. We used Auto-Regressive Distributed Lag (ARDL) bounds testing approach to test the existence of long run relationship between the variables. The Vector Error Correction Method (VECM) Granger approach is applied to test the direction of causal relation between the series. Our findings indicate the existence of long-run relationship among the variables. Natural gas consumption, real gross fixed capital formation and trade add in economic growth. Natural gas consumption, real gross fixed capital formation and real trade Granger cause real GDP. These findings open up new insights for policy makers to formulate a comprehensive energy policy to sustain economic growth for long run.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 49260.
Date of creation: 18 Aug 2013
Date of revision: 21 Aug 2013
Natural gas consumption; Economic growth; Tunisia; ARDL approach;
Other versions of this item:
- Farhani, Sahbi & Shahbaz, Muhammad & Arouri, Mohamed & Teulon, Frédéric, 2014. "The role of natural gas consumption and trade in Tunisia's output," Energy Policy, Elsevier, vol. 66(C), pages 677-684.
- Mohamed Arouri & Sahbi Farhani & Muhammad Shahbaz & Frédéric Teulon, 2014. "The Role of Natural Gas Consumption and Trade in Tunisia’s Output," Working Papers 2013-057, Department of Research, Ipag Business School.
- Farhani, Sahbi & Shahbaz, Muhammad, 2013. "The Role of Natural Gas Consumption and Trade in Tunisia’s Output," MPRA Paper 48083, University Library of Munich, Germany, revised 05 Jun 2013.
- C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-31 (All new papers)
- NEP-ARA-2013-08-31 (MENA - Middle East & North Africa)
- NEP-ENE-2013-08-31 (Energy Economics)
- NEP-FDG-2013-08-31 (Financial Development & Growth)
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