Foreign Direct Investment and Electricity Consumption on Economic Growth: Evidence from South Africa

Smile Dube (dubes@csus.edu)
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Smile Dube: California State University, Postal: 6000 J Street, Sacramento, CA 95819 - U.S.A., http://www.csus.edu/econ/

Economia Internazionale / International Economics, 2009, vol. 62, issue 2, 175-200

Abstract: This paper specifies a model in which we investigate the interrelationship of economic growth, electricity consumption and foreign direct investment. We find that foreign direct investment and electricity consumption are only cointegrated when GDP is the dependent variable. With respect to causality, the null hypothesis that electricity consumption (kWh) and foreign direct investment (FDI) do not ‘Granger cause’ GDP is rejected. Similarly, the null hypothesis that GDP and electricity consumption do not ‘Granger cause’ FDI is rejected at the same 5% level of significance. We find that electricity consumption and foreign direct investment Granger cause economic growth.

Keywords: ARLD; Toda and Yamamoto Granger Non-causality; South Africa; Augmented VAR (search for similar items in EconPapers)
JEL-codes: F21 F32 F43 Q43 (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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