Electricity consumption and economic growth: A revisit study of their causality in Malaysia

Mohd Thas Thaker, M. A. and Mohd Thas Thaker, Hassanudin * and Amin, M. and Allah Pitchay, A. (2019) Electricity consumption and economic growth: A revisit study of their causality in Malaysia. Etikonomi, 18 (1). pp. 1-12. ISSN 1412-8969

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Official URL: http://doi.org/10.15408/etk.v18i1.7455


The role of electricity towards the economy becomes crucial in many countries including in Malaysia. It becomes necessary to investigate whether electricity consumption contributes to economic growth in order to make appropriate energy policies. The purpose of this research is to examine the long run and causal relationships between electric power consumption and real GDP. This paper applies to the error-correction model. The results indicate that electricity consumption has a positive impact on economic growth. Besides that, there was unidirectional Granger causality running from electricity consumption to real GDP but not vice versa. This paper suggests that Malaysia is becoming an energy-dependent country. The government should emphasize on formulating energy strategies so as to avoid adverse effects on economic growth

Item Type: Article
Uncontrolled Keywords: Electricity consumption; economic growth; Granger causality; Malaysia
Subjects: H Social Sciences > HF Commerce
Divisions: Others > Non Sunway Academics
Sunway University > Sunway University Business School > Dept. Economics & Finance
Depositing User: Dr Janaki Sinnasamy
Related URLs:
Date Deposited: 29 Sep 2020 02:51
Last Modified: 07 Oct 2020 04:06
URI: http://eprints.sunway.edu.my/id/eprint/1384

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