Short-run and Long-run causality between electricity consumption and economic growth in a small open economy
Helmi Hamdi () and
Rashid Sbia ()
MPRA Paper from University Library of Munich, Germany
The aim of this paper is to investigate the causal relationship between electricity consumption and GDP growth for the kingdom of Bahrain during the period 1980–2008. By performing an error-correction model, our results reveal that electricity consumption and GDP are cointegrated. The granger causality tests indicate bi-directional relationship between electricity consumption and GDP growth in the long-run while results of the short-run reveal unidirectional causality relationship between the two variables.
Keywords: Electricity consumption; Growth; Bahrain; cointegration; Granger causality (search for similar items in EconPapers)
JEL-codes: O44 O47 Q4 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:49904
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