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Do Electricity Consumption and International Trade Openness Boost Economic Growth in Sudan? Empirical Analysis from Bounds Test to Cointegration Approach

Author

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  • Khalid Eltayeb Elfaki

    (Ph.D Student in Economics, Faculty of Economics and Business, Jenderal Soedirman University, Purwokerto, Indonesia,)

  • Nurul Anwar

    (Faculty of Economics and Business, Jenderal Soedirman University, Purwokerto, Indonesia.)

  • Arintoko Arintoko

    (Faculty of Economics and Business, Jenderal Soedirman University, Purwokerto, Indonesia.)

Abstract

Electricity power plays a significant role as an engine factor in boosting economic growth, particularly in developing countries. This paper utilized the autoregressive distributed lag (ARDL) model to study the interrelationship among electricity consumption, international trade openness, and economic growth in Sudan data spanning 1975-2014. The cointegration test result confirms the presence of long run cointegration relationship among electricity consumption, international trade openness, and economic growth. The estimated results of the long run point out that electricity consumption and international trade openness showed a significant positive relationship relating to economic growth. The estimated error correction term coefficient is found to be significant at a 1% significance level with an expected sign. The findings of this paper suggest that Sudan s economy takes advantage of promoting electricity production and more open international trade. Therefore, the policies that support and encourage electricity generation for effective uses are highly recommended. The engagement in international trade creates opportunities for Sudan s economy to benefit from the comparative advantage in exporting some goods that have a comparative advantage in Sudan as well as to import modern technologies particularly, the machineries and equipment relating to agriculture and industrial sectors recently to improve economic growth.

Suggested Citation

  • 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.
    • Handle: RePEc:eco:journ2:2020-04-2
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    2. Tomiwa Sunday Adebayo & Festus Victor Bekun & Ilhan Ozturk & Murat Ismet Haseki, 2023. "Another outlook into energy‐growth nexus in Mexico for sustainable development: Accounting for the combined impact of urbanization and trade openness," Natural Resources Forum, Blackwell Publishing, vol. 47(2), pages 334-352, May.
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    More about this item

    Keywords

    economic growth; trade openness; electricity consumption; ARDL; Sudan.;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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