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The Nexus between Electricity Consumption and Economic Growth in Bahrain

Helmi Hamdi, Rashid Sbia and Muhammad Shahbaz

MPRA Paper from University Library of Munich, Germany

Abstract: This paper explores the relationship between electricity consumption, foreign direct investment, capital and economic growth in case of the Kingdom of Bahrain. The Cobb-Douglas production is used over the period of 1980Q1–2010Q4. We have the ARDL bounds testing approach and found that cointegration exists among the series. Electricity consumption, foreign direct investment and capital add in economic growth. The VECM Granger causality analysis has reported the feedback effect between electricity consumption and economic growth and same is true for foreign direct investment and electricity consumption. This suggests us to explore sources of energy to achieve sustainable economic development for long run.

Keywords: Electricity Consumption; Economic Growth; Foreign Direct Investment; Bahrain (search for similar items in EconPapers)
JEL-codes: C5 C51 (search for similar items in EconPapers)
Date: 2013-07-05, Revised 2013-07-19
New Economics Papers: this item is included in nep-ara, nep-cwa and nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Journal Article: The nexus between electricity consumption and economic growth in Bahrain (2014) Downloads
Working Paper: The nexus between electricity consumption and economic growth in Bahrain (2014)
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