Electricity Consumption and Economic Growth in Jordan: Bounds Testing Cointegration Approach

  • Al-Abdulrazag A. Bashier Economic Department, King Saud University, AL-Riyadh, KSA

Abstract

The objective of this paper is to investigate the short-run and longrun causal relationships between electricity consumption and economic growth in Jordan between 1976 and 2013, utilizing the Autoregressive Distributed Lag (ARDL) model. Estimates revealed the existence of a longrun equilibrium relationship between the said variables. The VECM model results indicated a long-run, bidirectional causality between the two variables as seen from the negative and significant error correction terms. The results of Granger-Causality test within VECM disclosed a bidirectional weak and strong short-run causality between electricity consumptions per capita and economic growth. The estimation results provide a strong support for the feedback hypothesis in Jordan

Downloads

Download data is not yet available.
Published
2016-01-29
How to Cite
A. Bashier, A.-A. (2016). Electricity Consumption and Economic Growth in Jordan: Bounds Testing Cointegration Approach. European Scientific Journal, ESJ, 12(1), 429. https://doi.org/10.19044/esj.2016.v12n1p429