Farhani, Sahbi and Shahbaz, Muhammad (2013): The Role of Natural Gas Consumption and Trade in Tunisia’s Output.

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Abstract
This paper examines the impact of natural gas consumption, real gross fixed capital formation and trade on the real GDP in case of Tunisia over the period of 19802010. We used AutoRegressive Distributed Lag (ARDL) bounds testing approach to test the existence of long run relationship between the variables. The Vector Error Correction Method (VECM) Granger approach is applied to test the direction of causal relation between the series. Our findings indicate the existence of longrun relationship among the variables. Natural gas consumption, real gross fixed capital formation and trade add in economic growth. Natural gas consumption, real gross fixed capital formation and real trade Granger cause real GDP. These findings open up new insights for policy makers to formulate a comprehensive energy policy to sustain economic growth for long run.
Item Type:  MPRA Paper 

Original Title:  The Role of Natural Gas Consumption and Trade in Tunisia’s Output 
English Title:  The Role of Natural Gas Consumption and Trade in Tunisia’s Output 
Language:  English 
Keywords:  Natural gas consumption, Economic growth, Tunisia, ARDL approach 
Subjects:  C  Mathematical and Quantitative Methods > C5  Econometric Modeling 
Item ID:  48083 
Depositing User:  Muhammad Shahbaz 
Date Deposited:  07. Jul 2013 09:35 
Last Modified:  07. Jul 2013 10:23 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/48083 