Electricity Consumption, Economic Growth and Trade Openness in Kazakhstan: Evidence from Cointegration and Causality

Saleheen Khan, Farooq Ahmed Jam, Muhammad Shahbaz and Md Al Mamun

MPRA Paper from University Library of Munich, Germany

Abstract: We investigate the relation between electricity consumption and economic growth by incorporating trade openness, capital, and labor in production function of Kazakhstan using annual data for 1991-2014. We apply the ARDL bounds testing and the VECM Granger causality approach to examine long run and causality relation between the variables. Our results confirm the existence of long run relation among the series. The empirical evidence reveals that electricity consumption adds in economic growth. Trade openness stimulates economic growth, and capital and labor promote economic growth, as well. The causality analysis shows that electricity consumption Granger causes economic growth and trade openness. We also document feedback effect between trade openness and economic growth. Our study provides new insights for policy makers to articulate a comprehensive economic, trade and energy policy to sustain long run economic growth in Kazakhstan.

Keywords: Electricity; Economic growth; Kazakhstan; VECM (search for similar items in EconPapers)
JEL-codes: A10 (search for similar items in EconPapers)
Date: 2018-07-01, Revised 2018-07-14
New Economics Papers: this item is included in nep-cwa, nep-ene, nep-ets and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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