Causal Relationship between Electric Consumption and Economic Growth in South East Sulawesi

Manat Rahim, Pasrun Adam (), La Ode Suriadi, Zainuddin Saenong, Ery Atmodjo, Wali Aya Rumbia and Irma P. Tamburaka
Additional contact information
Manat Rahim: Department of Economics, Faculty of Economics and Business, Universitas Halu Oleo, Kendari 93232, Indonesia,
La Ode Suriadi: Department of Economics, Faculty of Economics and Business, Universitas Halu Oleo, Kendari 93232, Indonesia,
Zainuddin Saenong: Department of Economics, Faculty of Economics and Business, Universitas Halu Oleo, Kendari 93232, Indonesia,
Ery Atmodjo: Department of Agribusiness, Faculty of Agriculture, Manokwari 98314, Universitas Papua.
Wali Aya Rumbia: Department of Economics, Faculty of Economics and Business, Universitas Halu Oleo, Kendari 93232, Indonesia,
Irma P. Tamburaka: Department of Economics, Faculty of Economics and Business, Universitas Halu Oleo, Kendari 93232, Indonesia,

International Journal of Energy Economics and Policy, 2018, vol. 8, issue 6, 29-34

Abstract: This study aims to investigate the causal relationship between electric consumption and economic growth in Southeast Sulawesi. Time series of electric consumption and per capita regional gross domestic product data in the period of 1985 to 2016 were used in this study. The causal relationship were examined using an autoregressive distributed lag (ARDL) model and Granger causality test. The tests revealed a strong positive causal relationship between electric consumption and economic growth of Souetheast Sulawesi in the long-run. Each 1% increase in electric consumption would caused 0,31% increase in economic growth. In the short-run, however, weak relationship exists between electric consumption and economic growth. Hence, electric consumption contributes to economic growth of Southeast Sulawesi in the long-run and in the short-run.

Keywords: Electric consumption; economic growth; ARDL model; Granger causality. (search for similar items in EconPapers)
JEL-codes: C12 C32 E2 E21 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://www.econjournals.com/index.php/ijeep/article/download/6973/3989 (application/pdf)
https://www.econjournals.com/index.php/ijeep/article/view/6973/3989 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2018-06-5

Access Statistics for this article

International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk

More articles in International Journal of Energy Economics and Policy from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().