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Electricity Production, Economic Growth and Employment Nexus in Sudan: A Cointegration Approach

Author

Listed:
  • Atif Awad

    (Department of Finance and Economics, Faculty of Business Administration, University of Sharjah, UAE)

  • Ishak Yossof

    (Department of Economics, School of Economics, The National University of Malaysia, Malaysia)

Abstract

The present study examines the relationship between electricity production (EP), economic growth and employment in Sudan between 1980 and 2013 by using cointegration and causality techniques. We use the Wald test to determine the direction of the causality relationship between the variables. The results show that there is a long run relationship between the variables. The causality relationship test detects the existence of bi-directional relationship between energy generation and economic growth in the short run. The causality analysis also detects the existence of long as well as strong long run bi-directional relationship between each pair of the variables. Overall, the results suggest that even in short run, decrease in the electricity will lead to fall in the economic growth, and vice versa. Thus, the results lend support to the recent effort by Sudan s government in the expansion of EP, since it has significant impact on the country s economic development.

Suggested Citation

  • Atif Awad & Ishak Yossof, 2016. "Electricity Production, Economic Growth and Employment Nexus in Sudan: A Cointegration Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 6(1), pages 6-13.
    • Handle: RePEc:eco:journ2:2016-01-02
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    References listed on IDEAS

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    Cited by:

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    3. Zhongdong Yu & Wei Liu & Liming Chen & Serkan Eti & Hasan Dinçer & Serhat Yüksel, 2019. "The Effects of Electricity Production on Industrial Development and Sustainable Economic Growth: A VAR Analysis for BRICS Countries," Sustainability, MDPI, vol. 11(21), pages 1-13, October.
    4. Xu, Guangyue & Yang, Hualiu & Schwarz, Peter, 2022. "A strengthened relationship between electricity and economic growth in China: An empirical study with a structural equation model," Energy, Elsevier, vol. 241(C).
    5. Khalid Eltayeb Elfaki & Nurul Anwar & Arintoko Arintoko, 2020. "Do Electricity Consumption and International Trade Openness Boost Economic Growth in Sudan? Empirical Analysis from Bounds Test to Cointegration Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 9-16.
    6. Sebastian Majewski & Urszula Mentel & Raufhon Salahodjaev & Marek Cierpiał-Wolan, 2022. "Electricity Consumption and Economic Growth: Evidence from South Asian Countries," Energies, MDPI, vol. 15(4), pages 1-10, February.
    7. Samuel David Adebisi & Raymond Osi Alenoghena & Ayobola Olufolake Charles, 2023. "Impact of Energy Supply on Economic Growth in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(2), pages 959-969, February.
    8. Bekhet, Hussain Ali & Latif, Nurul Wahilah Abdul, 2018. "The impact of technological innovation and governance institution quality on Malaysia's sustainable growth: Evidence from a dynamic relationship," Technology in Society, Elsevier, vol. 54(C), pages 27-40.
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    More about this item

    Keywords

    Economic Growth; Electricity Production; Employment;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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