Electricity consumption and economic growth in Vietnam: A cointegration and causality analysis

Canh Le

MPRA Paper from University Library of Munich, Germany

Abstract: Using a cointegration and causality analysis, this paper investigates the causal relationship between electricity consumption and economic growth in Vietnam during the period of 1975-2010. Empirical results show that there is no causality effect of per capita electricity consumption on per capita Gross domestic products (GDP) in both short-run and long-run, but a causality relationship running from per capita GDP to per capita electricity consumption in the long-run. This result is helpful to understand the roles of economic growth on making energy policies in Vietnam to deal with the current electricity shortage accompanied with economic growth and to ensure the national energy security.

Keywords: Electricity consumption; economic growth; cointegration; causality; Vietnam (search for similar items in EconPapers)
JEL-codes: C22 Q40 (search for similar items in EconPapers)
Date: 2011, Revised 2011
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Citations: View citations in EconPapers (1)

Published in Journal of Economics and Development 43 (2011): pp. 24-36

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:81052

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