scholarly journals Electricity Consumption and Economic Growth in Vietnam: A Cointegration and Causality Analysis

2011 ◽  
pp. 24-36
Author(s):  
Canh Le Quang
Keyword(s):  
Economic Growth ◽  
Electricity Consumption ◽  
Causality Analysis ◽  
Long Run ◽  
Short Run ◽  
National Energy Security ◽  
Causality Relationship ◽  
Per Capita ◽  
Electricity Shortage ◽  
Domestic Products

Using a cointegration and causality analysis, this paper investigates the causal relationship between electricity consumption and economic growth in Vietnam dur- ing the period of 1975-2010. Empirical results show that there is no causality effect of per capita electricity consumption on per capita Gross domestic products (GDP) in both the short-run and long-run, but a causality relationship running from per capita GDP to per capita electricity consumption in the long-run. This result is help- ful to understand the roles of economic growth on making energy policies in Vietnam to deal with the current electricity shortage accompanied with economic growth and to ensure national energy security.

scholarly journals Personal remittances, banking sector development and economic growth in Israel: A trivariate causality test

2015 ◽  
Vol 13 (1) ◽  
pp. 1014-1027
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Gdp Per Capita ◽  
Series Data ◽  
Long Run ◽  
Banking Sector Development ◽  
Integration Test ◽  
Short Run ◽  
Causality Relationship ◽  
Per Capita

The current study investigates the causal relationship between personal remittances and economic growth using Israel time series data from 1975 to 2011. In a bid to contain the omission-of-variable bias not addressed in many past studies on this topic, this study included banking sector development as a third variable in the relationship between personal remittances and economic growth to create a tri-variate causality framework. Personal remittances as a ratio of GDP, domestic credit to private sector by banks as a ratio of GDP and GDP per capita were used as proxies for personal remittances, banking sector development and economic growth respectively for the purposes of this study. It used the Johansen co-integration test to examine the existence of the long run relationship and vector error correction model (VECM) to determine the direction of causality between personal remittances, banking sector development and economic growth both in the long and short run. The findings reveal that: (1) there is a significant long run causality relationship running from GDP per capita and banking sector development towards personal remittances, (2) there is an insignificant long run causality relationship running from personal remittances and GDP per capita towards banking sector development, (3) there is no long run causality relationship running from personal remittances and banking sector development towards GDP per capita and there is no short run causality relationship between the three variables that were under study in Israel. The author therefore recommends the authorities of Israel to speed up the implementation of banking sector development and economic growth programmes in order to increase the quantity of personal remittances inflows

scholarly journals Impact of FDI and Electricity on the Economic Growth of Pakistan: A Long Run Cointegration and Causality Analysis

2021 ◽  
Vol 12 (2) ◽  
pp. 273
Author(s):  
Umer Qazi ◽  
Aftab Alam ◽  
Shahab Ahmad ◽  
Rani Ambreen
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Direct Investment ◽  
Electricity Consumption ◽  
Causality Analysis ◽  
Bounds Testing ◽  
Long Run ◽  
Ardl Bounds Testing ◽  
Short Run ◽  
The Impact

Since the 1980s, analysts have been debating the effect of foreign direct investment (FDI) and electricity consumption (EC) on the economic growth (GDP) of developing countries. The purpose of the study is to estimate the long-run relationship between FDI, electricity consumption and GDP of Pakistan for the period of 1971 to 2017, using ARDL bounds testing, FMOLS and Canonicals cointegration regression. For causality analysis, the study uses a VECM approach for short-run causality directions and MWALD/Toda Yamamoto approach for the long-run causality directions. The cointegration results of all the approaches state that there exists a positive and significant long-run relationship between the concerned variables. The impact of electricity consumption on economic growth is very strong as compared to FDI. Moreover, in the short-run, there is a unidirectional causality running from FDI to GDP and GDP to EC. In the long-run causality, the study finds unidirectional causality for FDI and bidirectional causality for EC with GDP.

Electricity consumption and economic growth in ASEAN

2017 ◽  
Vol 5 (2) ◽  
pp. 16
Author(s):  
Ahmad Ghazali Ismail ◽  
Arlinah Abd Rashid ◽  
Azlina Hanif
Keyword(s):  
Economic Growth ◽  
Energy Use ◽  
Electricity Consumption ◽  
Panel Estimation ◽  
Real Gdp ◽  
Long Run ◽  
Bidirectional Relationship ◽  
Short Run ◽  
Using Data ◽  
The Relationship

The relationship and causality direction between electricity consumption and economic growth is an important issue in the fields of energy economics and policies towards energy use. Extensive literatures has discussed the issue, but the array of findings provides anything but consensus on either the existence of relations or direction of causality between the variables. This study extends research in this area by studying the long-run and causal relations between economic growth, electricity consumption, labour and capital based on the neo-classical one sector aggregate production technology mode using data of electricity consumption and real GDP for ASEAN from the year 1983 to 2012. The analysis is conducted using advanced panel estimation approaches and found no causality in the short run while in the long-run, the results indicate that there are bidirectional relationship among variables. This study provides supplementary evidences of relationship between electricity consumption and economic growth in ASEAN.

scholarly journals AID AND GROWTH IN BANGLADESH: A REASSESSMENT

2018 ◽  
pp. 422-440
Author(s):  
Sharif Hossain ◽  
Rajarshi Mitra ◽  
Thasinul Abedin
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Inflation Rate ◽  
Government Expenditure ◽  
Real Income ◽  
Domestic Investment ◽  
Real Gdp ◽  
Long Run ◽  
Short Run ◽  
Per Capita

Although the amount of foreign aid received by Bangladesh as a share of GDP has declined over the years, Bangladesh remains one of the heavily aiddependent countries in Asia. The results of most empirical studies that have examined the effectiveness of foreign aid or other forms of development assistance for economic growth have varied considerably depending on the econometric methodology used and the period of study. As the debate and controversy over aid-effectiveness for economic growth continue to grow, this paper reinvestigates the short-run and long-run effects of foreign aid received on percapita real income of Bangladesh over the period 1972–2015. A vector error correction model is estimated. The results indicate lack of any significant short-run and long-run relation between foreign aid and per-capita real income. Results further indicate short-run unidirectional causalities from per-capita real GDP to domestic investment (in proportion to GDP), from government expenditure (in proportion to GDP) to inflation rate, from inflation rate to domestic investment (in proportion to GDP), and from domestic investment to foreign aid (as percentages of GDP). Short-run bidirectional causality is observed between per-capita electricity consumption and per-capita real GDP, and between per-capita real GDP and government expenditure (in proportion to GDP).

scholarly journals Does the Export-Led Growth Hypothesis Hold for Services Exports in Emerging Economies?

2021 ◽  
Vol 14 (27) ◽  
pp. 63-75
Author(s):  
Okpeku Lilian ONOSE ◽  
◽  
Osman Nuri ARAS ◽  
Keyword(s):  
Economic Growth ◽  
Emerging Economies ◽  
Emerging Countries ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Per Capita ◽  
Positive Effect ◽  
Growth Hypothesis

The export-led growth hypothesis states a positive relationship between the growth of exports and long-run economic growth. This study examines the validity of the export-led growth hypothesis of services exports in 5 emerging economies, including Brazil, India, Nigeria, China, and South Africa (BINCS), for the period of 1980-2019. The study employs the panel mean group autoregressive distributed lag (ARDL) procedure to identify a causal relationship between services exports and gross domestic product (GDP) per capita. The findings show that the export-led growth hypothesis in services only has a positive effect on economic growth in the short run while other variables, including foreign direct investment (FDI), gross capital formation, and labour, increase economic growth in the long run. Hence, the emerging countries should focus more on internal investment to boost growth in the long and short run.

scholarly journals Government Size and Economic Growth in Vietnam: A Panel Analysis

2014 ◽  
Vol 222 ◽  
pp. 17-39
Author(s):  
THÀNH SỬ ĐÌNH
Keyword(s):  
Economic Growth ◽  
Generalized Method Of Moments ◽  
Government Expenditure ◽  
Provincial Government ◽  
Government Size ◽  
Government Revenue ◽  
Long Run ◽  
Short Run ◽  
Per Capita ◽  
A Share

The effect of government relative size on economic growth is a contentious issue. This paper is undertaken to test the relationship between government size and economic growth in Vietnam. The study is a panel data investigation, involving 60 provinces over the period 1997–2012. Various measures of government size are defined: provincial government expenditure as a share of gross provincial product (GPP), provincial government revenue as a share of GPP, real provincial government expenditure per capita, and real provincial government revenue per capita. Empirical estimates are employed by conducting Difference Generalized Method of Moments method proposed by Arellano and Bond (1991) and Pooled Mean-Group method by Pesaran, et al. (1999). These tests reveal: (i) provincial government expenditure (revenue) as a share of GPP has a significantly negative effect on economic growth; and (ii) the real government expenditure (revenue) per capita has a significantly positive effect on economic growth. It is also found that the long-run and short-run coefficients of government expenditure size are significant and negative, that the correction mechanism from the short run disequilibrium to the long run equilibrium is not convergent, and that government employment has a negative correlation with economic growth.

NON-LINEAR EFFECTS OF TERRORISM ON ECONOMIC GROWTH IN PAKISTAN: ACCOUNTING FOR CAPITAL PER WORKER AND STRUCTURAL BREAKS

2019 ◽  
pp. 1950014
Author(s):  
RONALD RAVINESH Kumar ◽  
SYED JAWAD HUSSAIN SHAHZAD ◽  
PETER JOSEF STAUVERMANN ◽  
NIKEEL Kumar
Keyword(s):  
Economic Growth ◽  
Capita Income ◽  
Structural Breaks ◽  
Per Capita Income ◽  
Negative Effects ◽  
Capital Share ◽  
Long Run ◽  
Non Linear ◽  
Short Run ◽  
Per Capita

In this study, we examine the asymmetric effects of terrorism and economic growth in Pakistan over the period 1970–2016, while considering the role of capital per worker and structural breaks. We use the non-linear ARDL approach to establish the long-run association and to estimate the short-run and long-run effects accordingly. The results indicate the presence of asymmetries in both long and short run. Moreover, 1% decrease in terrorism results in an increase of per capita income by 0.02% in the long run and 0.001% in the short run. Assuming symmetry, the long run capital share is 0.47. In asymmetric relation, a 1% increase in capital share increases output by 0.55%, whereas a 1% decrease in capital stock decreases output by 0.26%. The break effects show that the years 1993 and 2004 have negative effects on growth. The vector error correction model-based causality results indicate a unidirectional causality from terrorism to per capita income. Overall, the results highlight that terrorism is growth retarding.

scholarly journals Cointegration and Causality Analysis of Dynamic Linkage between Industrial Energy Consumption and Economic Growth in Pakistan

2019 ◽  
Vol 11 (17) ◽  
pp. 4546 ◽  
Author(s):  
Chandio ◽  
Rauf ◽  
Jiang ◽  
Ozturk ◽  
Ahmad
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Electricity Consumption ◽  
Industrial Sector ◽  
Oil Consumption ◽  
Industrial Oil ◽  
Long Run ◽  
Industrial Energy ◽  
Short Run ◽  
Gas Consumption

Energy consumption is a crucial factor to promote industrial sector contribution in an economy for its economic progression. Indeed, Pakistan is an emerging country, but recently adjoining with a very severe deficit of electricity sources. Hence, the industry value added growth leading to economic progression is also fronting inevitable challenges to promote the industry growth. The main objective of the study is to investigate the linkages between industrial sector oil, gas and electricity consumption, and renewable energy consumption with economic development in Pakistan. The findings display evidence of cointegration and a long-run relationship between the consumption of industrial energy and economic growth in Pakistan. The results showed that industrial electricity consumption and industrial gas consumption have a positive and statistically significant impact on economic growth both in the long run and the short run in Pakistan. Industrial oil consumption negatively impacts economic growth in the long run, but positively and statistically significantly impacts economic growth in the short run in Pakistan. Moreover, indications through the vector error correction model (VECM) model confirmed bi-directional relationships of industrial sector oil consumption and economic growth in Pakistan. Furthermore, the uni-directional nexus instituted between economic growth to industrial electricity consumption, industrial gas consumption to industrial electricity consumption, and industrial oil consumption to industrial electricity consumption. The findings uncovered solid interconnections among the studied variables and suggested that the Pakistani government should build a robust policy to diminish the oil, gas, and fossil fuels consumption for electricity production, as a replacement to depend on solar, hydro, wind, and biomass energy sources in Pakistan. Consequently, the government should promote more gas concentrated projects, as these will alleviate the contests of gas dearth and provide it to the industry at cheap prices with ease.

scholarly journals Electricity Consumption, Corruption and Economic Growth

2018 ◽  
Vol 6 (4) ◽  
pp. 193-214
Author(s):  
Busrat Abidemi Agbaje ◽  
Ekele Idachaba
Keyword(s):  
Economic Growth ◽  
Causal Relationship ◽  
Electricity Consumption ◽  
Electricity Price ◽  
African Countries ◽  
Causality Test ◽  
Long Run ◽  
Integration Techniques ◽  
Short Run ◽  
Electricity Infrastructure

An important prerequisite for reducing poverty, sustainable development and achievement of the millennium development goal has to some extent been tied to access to electricity. However, the subject matter; 'electricity consumption causing economic growth' has seen conflicting results from the theoretical and empirical front, if indeed a relationship exist at all. The study tests, within a panel context the long-run relationship between electricity consumption and economic growth for 13 African Countries from 2006 to 2017 by employing recently developed panel co-integration techniques. Implementing a three stage approach made up of panel unit root, panel co-integration and Granger causality test to examine the causal relationship between electricity consumption, electricity price, corruption, employment and growth. The study provides empirical evidence that a bidirectional causal relationship between electricity consumption and economic growth exist in the short run, suggesting that lack of electricity could hamper economic growth as well as an investment in electricity infrastructure would in turn improve economic growth. Also reveals that corruption causes the level of electricity consumption and GDP in the short run. On the long-run front electricity consumption and electricity price granger causes GDP and GDP causes electricity consumption.

scholarly journals Implication of Coal Expansion and Regional Energy Trading Center to Climate Goal: Dual Sustainability Analysis

2021 ◽  
Author(s):  
Edmund Ntom Udemba
Keyword(s):  
Economic Growth ◽  
Economic Performance ◽  
Environmental Sustainability ◽  
Ecological Footprint ◽  
Energy Use ◽  
Kuznets Curve ◽  
Per Capita Gdp ◽  
Long Run ◽  
Short Run ◽  
Per Capita

Abstract This current study seeks to investigate the policy implication of Turkey’s recent energy policies on its sustainable development. This study uses Turkey’s country-specific data and series of 1974 to 2018 for effective investigation and justification of the findings of this study with emphasis on both short run and long run implications. Three models were fitted to achieve study objectives to accommodate both environmental sustainability and economic impacts. Ecological footprint was considered better measure and used as proxy for the environment related model. In summary, with environment models, the selected series (per capita GDP, Industrialization, agriculture, coal as a single energy use and mixed energy use) except per capita GDP2 were found positively and significantly related to ecological footprint both in short run and long run which translates to poor performance of Turkey’s environment. Also, using economic growth model, the selected series (Industrialization, energy use and agriculture) were all confirmed positively and significantly related to the economic growth (per capita GDP). Additionally, Environmental Kuznets Curve (EKC) was established for Turkey’s environment and economic performance. Furthermore, using Granger causality as robust check to these findings, a nexus was found among the series confirming the validity of the cointegration (short and long run policies) estimations and results. In congruence with literature and hypotheses, the results from cointegration estimation shows that the twin polices may be good to the economic performance but will spark off adverse effect on environment.JEL Classification: C1, C32, E6, L7, O4, Q3, Q4, Q5

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