 The interaction of energy consumption and economic growth in South Africa: assessment from the bounds testing approachInternational Journal of Sustainable Economy, 2018, vol. 10, issue 2, 170-183 Abstract: The article empirically examined the causal interactions between energy consumption and economic growth in South Africa for the period 1970 to 2015 using the ARDL-bounds testing method. The article found a positive long-run cointegrating relationship between real economic growth and energy consumption in South Africa. In addition, the research found that although there is unidirectional causality running from energy consumption to economic growth in the short-run, there is long-run bidirectional causality between the two variables as indicated by the coefficients of the error correction terms which were negative and significant as predicted by theory. This means that reducing energy consumption adversely affect real economic growth in both the short- and the long-run; thus, South Africa should adopt a more vigorous energy policy. Keywords: energy consumption; economic growth; financial development; trade openness; ARDL; error-correction model; South Africa. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijsuse:v:10:y:2018:i:2:p:170-183 Access Statistics for this article More articles in International Journal of Sustainable Economy from Inderscience Enterprises Ltd |
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