Re-visting the electricity-growth nexus in South Africa

Andrew Phiri and Nyoni Bothwell

MPRA Paper from University Library of Munich, Germany

Abstract: This research study contributes to the ever-expanding literature by examining multivariate cointegration and causality relationships between electricity consumption, economic growth and other growth determinants for quarterly South African data collected between 1994/Q1 – 2014/Q4. The motivation behind this current research case study becomes apparent when taking into consideration that no previous studies have gone further than bivariate and trivariate analysis in investigating the electricity-growth nexus in South Africa. In conducting our empirical investigation, our obtained empirical results are two-fold in nature. Firstly, we find significant multivariate long-run cointegration relationships between economic growth, electricity consumption and other growth determinants. Secondly, our empirical analysis offers support in favour of the neutrality hypothesis, that is, the notion of no causal effects existing between electricity consumption and economic growth in the long-run. However, we find that exports directly cause electricity consumption whereas economic growth, domestic investment and employment levels causally flow to exports.

Keywords: Electricity consumption; Economic growth; Investment; Inflation; Employment; Exports; Co-integration; Granger causality; South Africa (search for similar items in EconPapers)
JEL-codes: C22 C32 Q43 (search for similar items in EconPapers)
Date: 2015-05-20
New Economics Papers: this item is included in nep-afr and nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: RE-VISTING THE ELECTRICITY-GROWTH NEXUS IN SOUTH AFRICA (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:64489

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