Short-run and Long-run causality between electricity consumption and economic growth in a small open economy
AbstractThe aim of this paper is to investigate the causal relationship between electricity consumption and GDP growth for the kingdom of Bahrain during the period 1980–2008. By performing an error-correction model, our results reveal that electricity consumption and GDP are cointegrated. The granger causality tests indicate bi-directional relationship between electricity consumption and GDP growth in the long-run while results of the short-run reveal unidirectional causality relationship between the two variables.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 49904.
Date of creation: 2012
Date of revision:
Electricity consumption; Growth; Bahrain; cointegration; Granger causality;
Find related papers by JEL classification:
- O44 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
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