Electricity consumption and economic growth in transition countries: A revisit using bootstrap panel Granger causality analysisYemane Wolde-Rufael Energy Economics, 2014, vol. 44, issue C, 325-330 Abstract: The purpose of this paper is to revisit the Granger causal relationship between electricity consumption and economic growth for 15 transition economies for the period 1975–2010 using a bootstrap panel causality approach that allows for both cross-sectional dependency and for heterogeneity across countries. Applying this approach, we found a unidirectional causality running from electricity consumption to economic growth only in Belarus and Bulgaria; from economic growth to electricity consumption in the Czech Republic, Latvia, Lithuania and the Russian Federation; bidirectional causality only in Ukraine while no Granger causality in any direction in Albania, Macedonia, Moldova, Poland, Romania, Serbia, Slovak Republic and Slovenia. These results show that there is a limited support for the electricity-led growth hypothesis. Nevertheless these different findings provide important implications for energy strategies and policies for transition countries. Keywords: Electricity consumption; Economic growth; Panel bootstrap causality; Cross-sectional dependency; Slope heterogeneity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:44:y:2014:i:c:p:325-330 DOI: 10.1016/j.eneco.2014.04.019 Access Statistics for this article Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant More articles in Energy Economics from Elsevier |
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