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Modeling causality between Electricity consumption and Economic Growth in BIICS Countries

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  • HAMDI, Helmi
  • SBIA, Rashid

Abstract

This paper tests the causal relationship between electricity consumption per capita and gross domestic product (GDP) per capita for Brazil, India, Indonesia, China and South Africa for the period 1971–2009. To reach this goal, we use panel cointegration analysis and Granger causality tests. Our results reveal that electricity consumption and GDP are cointegrated and the granger causality tests indicate a long-run relationship between electricity consumption and GDP growth for all countries except for South Africa. The short-run estimations indicate that GDP granger cause electricity consumption but not the reverse; hence the existence of unidirectional short-run causality relationship the two variables.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 49909.

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Date of creation: 2012
Date of revision: 2012
Handle: RePEc:pra:mprapa:49909

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Keywords: : Electricity consumption; Growth; BIICS; cointegration; Granger causality;

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