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Energy Consumption and Economic Growth in MENA: An Analysis Using the Bounds Testing Approach to Cointegration

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  • Besma TALBI

    (Polytechnic School of Tunisia, University of Carthage, Tunisia)

Abstract

This paper investigates the causal relationship between energy consumption and economic growth for Algeria, Egypt, Iran, Jordan, Morocco, Saudi Arabia, Tunisia and United Arab Emirates from 1975 to 2011. To examine this relationship, we use Autoregressive Distributed Lag (ARDL) bounds testing approach of cointegration and vector error-correction models. The cointegration test results show that there is no cointegration between the energy consumption and the economic growth in four countries (Algeria, Jordan, Tunisia and United Arab Emirates). Thus, causal relationship cannot be estimated for these countries. However, the cointegration and causal relationship is found in four countries (Egypt, Iran, Morocco and Saudi Arabia). The overall results indicate that there is no relationship between the energy consumption and the economic growth in most of the MENA countries. Further evidence indicates that policies for energy conservation can have a little or no impact on economic growth in most of the MENA countries..

Suggested Citation

  • Besma TALBI, 2015. "Energy Consumption and Economic Growth in MENA: An Analysis Using the Bounds Testing Approach to Cointegration," Bulletin of Energy Economics (BEE), The Economics and Social Development Organization (TESDO), vol. 3(3), pages 146-155, September.
  • Handle: RePEc:ijr:beejor:v:3:y:2015:i:3:p:146-155
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    References listed on IDEAS

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    More about this item

    Keywords

    Growth; Energy; MENA countries;
    All these keywords.

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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