Revisiting the Electricity Consumption-Economic Growth Nexus in Angola: The Role of Exports, Imports and Urbanization

Authors

  • Sakiru Adebola Solarin
  • Muhammad Shahbaz Department of Management Sciences, COMSATS Institute of Information Technology, Lahore, Pakistan.
  • Syed Jawad Hussain Shahzad

Abstract

The present study aims to reinvestigate the relationship between electricity consumption and economic growth in Angola by introducing exports, imports and urbanization in the production function. We utilize the combined cointegration method to test the long-run relationship for the period of 1971-2012. Whilst accommodating structural breaks, the ARDL bounds test approach is applied to examine the robustness of the long-run relationship in the variables. The results reveal that electricity consumption boosts economic growth but urbanization impairs it. The VECM causality results unveil the feedback relationship of electricity consumption with economic growth, exports and imports. It is, therefore, suggested that the policy makers should formulate the policies to improve the electricity supply that in turn will enhance the economic growth.Keywords: Electricity consumption, economic growth, combined cointegration test, Granger causality testJEL Classifications: C32; O55, Q43

Downloads

Download data is not yet available.

Downloads

Published

2016-07-22

How to Cite

Solarin, S. A., Shahbaz, M., & Shahzad, S. J. H. (2016). Revisiting the Electricity Consumption-Economic Growth Nexus in Angola: The Role of Exports, Imports and Urbanization. International Journal of Energy Economics and Policy, 6(3), 501–512. Retrieved from https://econjournals.com/index.php/ijeep/article/view/2594

Issue

Vol. 6 No. 3 (2016)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.