Adebola, Solarin Sakiru (2011) Electricity consumption and economic growth: trivariate investigation in Botswana with capital formation. International Journal of Energy Economics and Policy, 1 (2). pp. 32-46. ISSN 2146-4553

PDF Restricted to Registered users only Download (933kB) | Request a copy

Abstract

This study investigates the relationship between electricity consumption and real gross domestic product in Botswana (the world’s largest producer of diamonds). The study includes capital formation in a trivariate system for the period covering 1980-2008. Zivot and Andrews (1992) unit roots test; bound test for cointegration, and Granger causality test are employed. Unidirectional causality is found from electricity consumption to real gross domestic product is in line with study of Altinay and Karagol (2005) among others. The long run estimate reinforce the Granger causality tests by indicating that electricity consumption is positively associated with real gross domestic product in the long run. Further findings suggest unidirectional causality from capital formation to real gross domestic product. The implication is that Botswana- being a highly energy dependent country- will have the performance of its capital formation on the economy partly determined by adequate electricity.

Item Type:	Article
Uncontrolled Keywords:	Economic growth, Electricity consumption, Bound test, Causality, Structural break, Botswana
Subjects:	H Social Sciences > HC Economic History and Conditions
Divisions:	School of Economics, Finance & Banking
Depositing User:	Mrs. Norazmilah Yaakub
Date Deposited:	14 Nov 2019 02:17
Last Modified:	14 Nov 2019 02:17
URI:	https://repo.uum.edu.my/id/eprint/26595

Actions (login required)

View Item