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Energy-GDP Nexus for Oil-Exporting Country: The Case of Bahrain

Author

Listed:
  • Mohamed Sayed Abou Elseoud

    (College of Business Administration, University of Bahrain, Bahrain)

  • Fuad M. Kreishan

    (Faculty of Business Administration and Economics, Al-Hussein Bin Talal University, Jordan.)

Abstract

The main objective of this paper is to investigate the relationships between electricity consumption and economic growth in Bahrain between 1980 and 2019, utilizing the Autoregressive Distributed Lag (ARDL) model. Estimates revealed the existence of a long run equilibrium relationship between the electricity consumptions per capita and GDP per capita. The Pairwise Granger Causality Test results indicated a unidirectional causality running from electricity consumption to economic growth. The estimation results provide a strong support for the Growth hypothesis in Bahrain, suggesting that Bahrain economy is Energy-dependent. Therefore, it should be taken into consideration that energy consumption has effect on economic growth rates by policy makers.

Suggested Citation

  • Mohamed Sayed Abou Elseoud & Fuad M. Kreishan, 2020. "Energy-GDP Nexus for Oil-Exporting Country: The Case of Bahrain," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 80-86.
    • Handle: RePEc:eco:journ2:2020-06-11
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    References listed on IDEAS

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    Cited by:

    1. Zeinab Zanjani & Pedro Macedo & Isabel Soares, 2021. "Investigating Carbon Emissions from Electricity Generation and GDP Nexus Using Maximum Entropy Bootstrap: Evidence from Oil-Producing Countries in the Middle East," Energies, MDPI, vol. 14(12), pages 1-22, June.

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    More about this item

    Keywords

    Economic growth; Energy; ARDL; Granger Causality; Bahrain;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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