Multivariate Granger causality between electricity generation, exports, prices and GDP in Malaysia

Energy, 2010, vol. 35, issue 9, 3640-3648

Abstract: This paper employs annual data for Malaysia from 1970 to 2008 to examine the causal relationship between economic growth, electricity generation, exports and prices in a multivariate model. We find that there is unidirectional Granger causality running from economic growth to electricity generation. However, neither the export-led nor handmaiden theories of trade are supported and there is no causal relationship between prices and economic growth. The policy implication of this result is that electricity conservation policies, including efficiency improvement measures and demand management policies, which are designed to reduce the wastage of electricity and curtail generation can be implemented without having an adverse effect on Malaysia’s economic growth.

Keywords: Malaysia; Granger causality; Exports; Energy (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (150)

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Working Paper: Multivariate Granger causality between electricity generation, exports, prices and GDP in Malaysia (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:35:y:2010:i:9:p:3640-3648

DOI: 10.1016/j.energy.2010.05.008

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