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Modeling causality between Electricity consumption and Economic Growth in BIICS Countries

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  • HAMDI, Helmi
  • SBIA, Rashid

Abstract

This paper tests the causal relationship between electricity consumption per capita and gross domestic product (GDP) per capita for Brazil, India, Indonesia, China and South Africa for the period 1971–2009. To reach this goal, we use panel cointegration analysis and Granger causality tests. Our results reveal that electricity consumption and GDP are cointegrated and the granger causality tests indicate a long-run relationship between electricity consumption and GDP growth for all countries except for South Africa. The short-run estimations indicate that GDP granger cause electricity consumption but not the reverse; hence the existence of unidirectional short-run causality relationship the two variables.

Suggested Citation

  • HAMDI, Helmi & SBIA, Rashid, 2012. "Modeling causality between Electricity consumption and Economic Growth in BIICS Countries," MPRA Paper 49909, University Library of Munich, Germany, revised 2012.
    • Handle: RePEc:pra:mprapa:49909
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    References listed on IDEAS

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    2. Ioana-Ancuta Iancu & Cosmin Pompei Darab & Stefan Dragos Cirstea, 2021. "The Effect of the COVID-19 Pandemic on the Electricity Consumption in Romania," ULB Institutional Repository 2013/351853, ULB -- Universite Libre de Bruxelles.

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    More about this item

    Keywords

    : Electricity consumption; Growth; BIICS; cointegration; Granger causality;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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