Revisiting the Electricity Consumption-Economic Growth Nexus in Angola: The Role of Exports, Imports and Urbanization

Sakiru Solarin, Muhammad Shahbaz and Syed Jawad Hussain Shahzad
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Syed Jawad Hussain Shahzad: COMSATS Institute of Information Technology, Islamabad Pakistan & University of Malaysia Terengganu, Malaysia.

International Journal of Energy Economics and Policy, 2016, vol. 6, issue 3, 501-512

Abstract: The present study aims to reinvestigate the relationship between electricity consumption and economic growth in Angola by introducing exports, imports and urbanization in the production function. We utilize the combined cointegration method to test the long-run relationship for the period of 1971-2012. Whilst accommodating structural breaks, the autoregressive distributed lag bounds test approach is applied to examine the robustness of the long-run relationship in the variables. The results reveal that electricity consumption boosts economic growth but urbanization impairs it. The vector error correction method causality results unveil the feedback relationship of electricity consumption with economic growth, exports and imports. It is, therefore, suggested that the policy makers should formulate the policies to improve the electricity supply that in turn will enhance the economic growth.

Keywords: Electricity Consumption; Economic Growth; Combined Cointegration Test; Granger Causality Test (search for similar items in EconPapers)
JEL-codes: C32 O55 Q43 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (14)

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