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Causality between Electricity Consumption & Economic growth : Empirical Evidence from India

  • Gupta, Geetu
  • Sahu, Naresh Chandra
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    In this study ,an attempt has been made to investigate causality between electricity consumption and economic growth in India by adopting Granger Engel causality model for 1960-2006 period .Test results shows that electricity consumption has positive effect on economic growth. The paper support for the reforms in power sector and indicates that electricity act as a catalyst in realizing various social and economic goals.

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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 22942.

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    Date of creation: 08 Oct 2009
    Date of revision:
    Handle: RePEc:pra:mprapa:22942
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    1. David I. Stern & Cutler J. Cleveland, 2004. "Energy and Economic Growth," Rensselaer Working Papers in Economics 0410, Rensselaer Polytechnic Institute, Department of Economics.
    2. Ghosh, Sajal, 2002. "Electricity consumption and economic growth in India," Energy Policy, Elsevier, vol. 30(2), pages 125-129, January.
    3. Morimoto, Risako & Hope, Chris, 2004. "The impact of electricity supply on economic growth in Sri Lanka," Energy Economics, Elsevier, vol. 26(1), pages 77-85, January.
    4. Ciarreta Antuñano, Aitor & Zárraga Alonso, Ainhoa, 2007. "Electricity consumption and economic growth: evidence from Spain," BILTOKI 2007-01, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).
    5. Asafu-Adjaye, John, 2000. "The relationship between energy consumption, energy prices and economic growth: time series evidence from Asian developing countries," Energy Economics, Elsevier, vol. 22(6), pages 615-625, December.
    6. Kamal Raj Dhungel, 2008. "A causal relationship between energy consumption and economic growth in Nepal," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 15(1), pages 137-150, June.
    7. DeJong, David N, et al, 1992. "Integration versus Trend Stationarity in Time Series," Econometrica, Econometric Society, vol. 60(2), pages 423-33, March.
    8. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-72, June.
    9. Altinay, Galip & Karagol, Erdal, 2005. "Electricity consumption and economic growth: Evidence from Turkey," Energy Economics, Elsevier, vol. 27(6), pages 849-856, November.
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