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

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...

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Main Authors: Mohd Thas Thaker, Mohamed Asmy, Mohd Thas Thaker, Hassanudin, Amin, Md Fouad, Allah Pitchay, Anwar
Format: Article
Language:English
Published: Faculty of Economic and Business, Universitas Islam Negeri Syarif Hidayatullah Jakarta 2019
Subjects:
H Social Sciences (General)
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
id iium-71858
recordtype eprints
spelling iium-718582019-07-12T02:19:59Z http://irep.iium.edu.my/71858/ Electricity consumption and economic growth:a revisit study of their causality in Malaysia Mohd Thas Thaker, Mohamed Asmy Mohd Thas Thaker, Hassanudin Amin, Md Fouad Allah Pitchay, Anwar H Social Sciences (General) 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. **************************************************************************************************** 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. Faculty of Economic and Business, Universitas Islam Negeri Syarif Hidayatullah Jakarta 2019 Article PeerReviewed application/pdf en http://irep.iium.edu.my/71858/1/7455-31477-1-PB.pdf Mohd Thas Thaker, Mohamed Asmy and Mohd Thas Thaker, Hassanudin and Amin, Md Fouad and Allah Pitchay, Anwar (2019) Electricity consumption and economic growth:a revisit study of their causality in Malaysia. Etikonomi Jurnal Ekonomi, 18 (1). pp. 1-12. ISSN 1412-8969 E-ISSN 2461-0771 http://journal.uinjkt.ac.id/index.php/etikonomi/article/view/7455/pdf
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic H Social Sciences (General)
spellingShingle H Social Sciences (General)
Mohd Thas Thaker, Mohamed Asmy
Mohd Thas Thaker, Hassanudin
Amin, Md Fouad
Allah Pitchay, Anwar
Electricity consumption and economic growth:a revisit study of their causality in Malaysia
description 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. **************************************************************************************************** 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.
format Article
author Mohd Thas Thaker, Mohamed Asmy
Mohd Thas Thaker, Hassanudin
Amin, Md Fouad
Allah Pitchay, Anwar
author_facet Mohd Thas Thaker, Mohamed Asmy
Mohd Thas Thaker, Hassanudin
Amin, Md Fouad
Allah Pitchay, Anwar
author_sort Mohd Thas Thaker, Mohamed Asmy
title Electricity consumption and economic growth:a revisit study of their causality in Malaysia
title_short Electricity consumption and economic growth:a revisit study of their causality in Malaysia
title_full Electricity consumption and economic growth:a revisit study of their causality in Malaysia
title_fullStr Electricity consumption and economic growth:a revisit study of their causality in Malaysia
title_full_unstemmed Electricity consumption and economic growth:a revisit study of their causality in Malaysia
title_sort electricity consumption and economic growth:a revisit study of their causality in malaysia
publisher Faculty of Economic and Business, Universitas Islam Negeri Syarif Hidayatullah Jakarta
publishDate 2019
url http://irep.iium.edu.my/71858/
http://irep.iium.edu.my/71858/
http://irep.iium.edu.my/71858/1/7455-31477-1-PB.pdf
first_indexed 2023-09-18T21:41:53Z
last_indexed 2023-09-18T21:41:53Z
_version_ 1777413194933862400

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