The Relationship between Electricity Consumption, Foreign Direct Investment and Economic Growth: Case of Benin

Desire Wade Atchike, Zhen-Yu Zhao and Geriletu Bao
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Desire Wade Atchike: School of Economics and Management, North China Electric Power University, Beijing 102206, China,
Zhen-Yu Zhao: School of Economics and Management, North China Electric Power University, Beijing 102206, China,
Geriletu Bao: Inner Mongolia Technical College of Construction, Huimin 010070, China.

International Journal of Energy Economics and Policy, 2020, vol. 10, issue 4, 507-515

Abstract: Using the autoregressive distributed lag (ARDL) bounds test with dummy variables and the Toda-Yamamoto approach; this paper investigated the relationship between electricity consumption, foreign direct investment and economic growth in Benin for the period of 1980-2014. Confirming the growth theory for Benin, the results show evidence of unidirectional causalities from electricity consumption to both economic development and foreign direct investment and a long run relationship with a speed of adjustment of 60.72%. These findings suggest that the government of Benin should target the implementation of new strategies to improve access to electricity in order to attract more foreign investment and achieve a rapid and sustainable economic growth.

Keywords: Electricity Consumption; Foreign Direct Investment; Economic Growth; Benin. (search for similar items in EconPapers)
JEL-codes: F21 F43 Q43 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2020-04-63

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