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Electricity consumption and economic growth in Vietnam: A cointegration and causality analysis

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  • Le Quang, Canh

Abstract

Using a cointegration and causality analysis, this paper investigates the causal relationship between electricity consumption and economic growth in Vietnam during the period of 1975-2010. Empirical results show that there is no causality effect of per capita electricity consumption on per capita Gross domestic products (GDP) in both short-run and long-run, but a causality relationship running from per capita GDP to per capita electricity consumption in the long-run. This result is helpful to understand the roles of economic growth on making energy policies in Vietnam to deal with the current electricity shortage accompanied with economic growth and to ensure the national energy security.

Suggested Citation

  • Le Quang, Canh, 2011. "Electricity consumption and economic growth in Vietnam: A cointegration and causality analysis," MPRA Paper 81052, University Library of Munich, Germany, revised 2011.
    • Handle: RePEc:pra:mprapa:81052
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    References listed on IDEAS

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    More about this item

    Keywords

    Electricity consumption; economic growth; cointegration; causality; Vietnam;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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