Electricity consumption and economic growth:a revisit study of their causality in Malaysia
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...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Faculty of Economic and Business, Universitas Islam Negeri Syarif Hidayatullah Jakarta
2019
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/71858/ http://irep.iium.edu.my/71858/ http://irep.iium.edu.my/71858/1/7455-31477-1-PB.pdf |
| Summary: | 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.
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Peran listrik terhadap ekonomi menjadi sangat penting di banyak negara termasuk
di Malaysia. Menjadi perlu untuk menyelidiki apakah konsumsi listrik berkontribusi pada
pertumbuhan ekonomi untuk membuat kebijakan energi yang tepat. Tujuan dari penelitian
ini adalah untuk menguji hubungan jangka panjang dan kausal antara konsumsi daya
listrik dan PDB riil. Penelitian ini menerapkan model koreksi kesalahan (ECM). Hasil
menunjukkan bahwa konsumsi listrik memiliki dampak positif pada pertumbuhan ekonomi.
Selain itu, ada kausalitas Granger searah yang berjalan dari konsumsi listrik ke PDB riil
tetapi tidak sebaliknya. Makalah ini menunjukkan bahwa Malaysia menjadi negara yang
bergantung pada energi. Pemerintah harus menekankan pada merumuskan strategi energi
untuk menghindari dampak buruk pada pertumbuhan ekonomi. |
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