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The Dynamics of Electricity Consumption and Growth Nexus: Empirical Evidence from Three Developing Regions

Author

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  • Anupam Das

    (Anupam Das is at the Department of Policy Studies, Mount Royal University, Alberta, Canada; email: adas@mtroyal.ca)

  • Murshed Chowdhury

    (Murshed Chowdhury is at the Department of Economics, University of Manitoba, Manitoba, Canada; email: umchowdm@cc.umanitoba.ca)

  • Syeed Khan

    (Syeed Khan is at the Department of Economics, University of Manitoba, Manitoba, Canada; email: umkhan6@cc.umanitoba.ca)

Abstract

In this article, a panel of 45 developing countries for the 1971–2009 period is used to investigate the dynamic relationship between electricity consumption and economic growth. We employ the system generalised method of moments (system GMMs) approach proposed by Blundell and Bond (1998), which is an information-efficient means of obtaining consistent coefficient estimates. Our result suggests a positive relationship between electricity consumption and economic growth when the full panel is estimated. Regional analysis suggests a positive growth–electricity nexus for Asia and the Pacific and the sub-Saharan African region, although the size and significance levels are different. We do not find any statistically significant relationship between electricity consumption and economic growth in Latin America and the Caribbean. JEL Classification : Q43, O13, O44, C23

Suggested Citation

  • Anupam Das & Murshed Chowdhury & Syeed Khan, 2012. "The Dynamics of Electricity Consumption and Growth Nexus: Empirical Evidence from Three Developing Regions," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 6(4), pages 445-466, November.
    • Handle: RePEc:sae:mareco:v:6:y:2012:i:4:p:445-466
    DOI: 10.1177/0973801012462121
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    References listed on IDEAS

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    More about this item

    Keywords

    Electricity Consumption; Economic Growth; Developing Countries; System GMM;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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