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Re-Visting The Electricity-Growth Nexus In South Africa

Listed author(s):
  • PHIRI Andrew

    (School of Economics, Faculty of Economic and Management Sciences,North West University (Potchefstroom Campus), South Africa)

  • NYONI Bothwell

    (Department of Applied Chemistry, Faculty of Applied Sciences,National University of Science and Technology (Bulawayo) Zimbabwe)

This research study contributes to the ever-expanding literature by examining multivariate cointegration and causality relationships between electricity consumption, economic growth and other growth determinants for quarterly South African data collected between 1994/Q1 – 2014/Q4. The motivation behind this current research case study becomes apparent when taking into consideration that no previous studies have gone further than bivariate and trivariate analysis in investigating the electricity-growth nexus in South Africa. In conducting our empirical investigation, our obtained empirical results are two-fold in nature. Firstly, we find significant multivariate long-run cointegration relationships between economic growth, electricity consumption and other growth determinants. Secondly, our empirical analysis offers support in favour of the neutrality hypothesis, that is, the notion of no causal effects existing between electricity consumption and economic growth in the long-run. However, we find that exports directly cause electricity consumption whereas economic growth, domestic investment and employment levels causally flow to exports.

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File URL: http://eccsf.ulbsibiu.ro/RePEc/blg/journl/11109phiri&nyoni.pdf
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Article provided by Lucian Blaga University of Sibiu, Faculty of Economic Sciences in its journal Studies in Business and Economics.

Volume (Year): 11 (2016)
Issue (Month): 1 (April)
Pages: 97-111

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Handle: RePEc:blg:journl:v:11:y:2016:i:1:p:97-111
Contact details of provider: Postal:
Lucian Blaga University of Sibiu, Faculty of Economic Sciences Dumbravii Avenue, No 17, postal code 550324, Sibiu, Romania

Phone: 004 0269 210375
Fax: 004 0269 210375
Web page: http://economice.ulbsibiu.ro/
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