The Effects of Electricity Production on Industrial Development and Sustainable Economic Growth: A VAR Analysis for BRICS Countries

Zhongdong Yu, Wei Liu, Liming Chen, Serkan Eti, Hasan Dinçer and Serhat Yüksel
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Zhongdong Yu: School of Management, GuangZhou University, GuangZhou 510006, China
Wei Liu: School of Economics and Management, Zhengzhou Normal University, Zhengzhou 450044, China
Liming Chen: College of Finance and Statistics, Hunan University, Changsha 410082, China
Serkan Eti: The School of Business, İstanbul Medipol University, İstanbul 34815, Turkey
Hasan Dinçer: The School of Business, İstanbul Medipol University, İstanbul 34815, Turkey
Serhat Yüksel: The School of Business, İstanbul Medipol University, İstanbul 34815, Turkey

Sustainability, 2019, vol. 11, issue 21, 1-13

Abstract: This study aims to evaluate the effect of electricity production on industrial development and sustainable economic growth. In this context, Brazil, Russia, India, China, and South Africa (BRICS), countries which have the highest increase in electricity production in the period of 2000–2018, are included in the scope of this study. Annual data of these variables in the period of 1991–2018 are used and three different models are created by using Vector Auto Regression (VAR) methodology. The findings state that electricity production in BRICS countries has a positive effect on both industrial production and sustainable economic growth. Hence, electricity production needs to be increased for them. For this purpose, it is important to encourage investors with tax advantages, location orientation and financing. Moreover, BRICS countries should give importance to renewable energy investments in order to increase electricity production. These issues have a contributing effect to sustainable economic growth.

Keywords: sustainability; electricity; sustainable economic growth; industry; BRICS (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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