Does electricity consumption impacting financial development? Wavelet analysis

Ali Matar ()
Additional contact information
Ali Matar: Jadara University

Future Business Journal, 2020, vol. 6, issue 1, 1-9

Abstract: Abstract The current study analyzes the time–frequency dependencies between financial development (FD) and electrical power consumption (EPC) in the Gulf Cooperation Council (GCC) Countries (Qatar, Saudi Arabia, Kuwait, the United Arab Emirates, Oman, and Bahrain) during the period 1980–2017. The practical examination is based on the wavelet squared coherence that allows assessing the co-movement between the selected variables of FD and EPC. The main objective of this study is to investigate the short- and long-term dependencies between FD for the GCC countries and EPC to provide helpful insights to policy makers, investors, and government to show them if FD is influenced by EPC in GCC countries. Most of previous related studies have employed co-integration, causality, and panel data techniques. However, this study will be the first study that uses the wavelet coherence analysis to examine the relationship between EPC and FD. The results show periodic changes in the model of the co-movements especially after 2008 for all countries at comparatively high frequencies. Besides, the results indicate strength of co-movement varies by country. Such as a high degree of co-movement between the electrical power consumption and financial development in United Arab Emirates, Kingdom of Saudi Arabia, and Qatar, while low co-movement with Kuwait and Bahrain. The result as well document a comprehensive change in electrical power consumption and financial development co-movement after 2008 at comparatively low frequencies especially in Kuwait, Oman, and Bahrain. The results of the current study provide prospective importance implications for policy makers in improving energy plans for GCC countries that redound to EPC depression policies whereas conserving financial development.

Keywords: Financial development; Electrical power consumption; Wavelet analysis; GCC (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1186/s43093-020-00017-w Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:futbus:v:6:y:2020:i:1:d:10.1186_s43093-020-00017-w

Ordering information: This journal article can be ordered from
https://fbj.springeropen.com/

DOI: 10.1186/s43093-020-00017-w

Access Statistics for this article

Future Business Journal is currently edited by Soad Kamel Rizk and Hayam Wahba

More articles in Future Business Journal from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().