Electricity Consumption and Exports Growth: Revisiting the Feedback Hypothesis

Mpho Bosupeng

MPRA Paper from University Library of Munich, Germany

Abstract: The dynamic relationship between exports and energy has been an interesting area of research in macroeconomics. This paper contributes to the extant literature by examining the relationship between electricity consumption and exports revenue for forty different economies as from 1980-2012. The study commences by examining the time series for unit roots using the Augmented Dickey-Fuller (ADF) test. The results of the Johansen cointegration test reveal that twenty-one economies under investigation exhibited statistically long run affiliations between exports income and electricity consumption. Comparatively, the Saikkonen and Lu ̈tkepohl test proved that exports and electricity consumption are statistically cointegrated in the long run for all economies. The Granger causality test showed that exports income promote an increase in electricity consumption. However, exports in some economies were induced by electricity consumption. Most importantly, the validity of the feedback hypothesis is affirmed as bidirectional causal relationships between exports and electricity consumption surface in multiple economies.

Keywords: exports; energy demand; electricity consumption; economic growth; feedback hypothesis. (search for similar items in EconPapers)
JEL-codes: Q43 (search for similar items in EconPapers)
Date: 2017, Revised 2017
New Economics Papers: this item is included in nep-ene and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Journal of Economics and Sustainable Development 8.12(2017): pp. 47-55

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/81756/1/MPRA_paper_81756.pdf original version (application/pdf)

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:pra:mprapa:81756

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().