An increase of electricity generation can lead to economic growth in South Africa

Hlongwane, Nyiko Worship and Daw, Olebogeng David (2021): An increase of electricity generation can lead to economic growth in South Africa.

Abstract

This study analysis the increase in electricity generation and economic growth in South Africa. The study employs time series data spanning from 1985 to 2020. The study employs an Autoregressive Distributed Lag Model (ARDL), Error Correction Model and Granger causality test to analyse the short and long run relationships between the variables. The empirical results revealed that there is a positive relationship between electricity generation and economic growth both in the short and long run period. The study therefore proposed the increase in electricity generation to increase economic growth in South Africa.

• Item Type: MPRA Paper
• Language: English
• Keywords: Electricity generation, Economic growth, ARDL, Granger causality, South Africa.
• Subjects: C - Mathematical and Quantitative Methods > C0 - General > C01 - Econometrics; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C32 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes ; State Space Models; E - Macroeconomics and Monetary Economics > E0 - General > E02 - Institutions and the Macroeconomy; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy

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