Jiranyakul, Komain (2014): Causal linkages between electricity consumption and GDP in Thailand: evidence from the bounds test.
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Abstract
This paper investigates the causal relationship between electricity consumption and real GDP by applying the bounds testing for cointegration in a multivariate framework. The error correction mechanism is employed to detect causal relationship in the presence of cointegration among three variables. Empirical results for Thailand during 2001Q1 and 2014Q2 suggest that there is long-run bidirectional causality between electricity consumption and real GDP. The source of causation in the long run is found by the significance of the error correction terms in both directions. In the short-run dynamics analysis, the positive relationship between electricity consumption and economic growth is not observed. The findings give implications for electricity efficiency and alternative energy sources in the long run.
Item Type: | MPRA Paper |
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Original Title: | Causal linkages between electricity consumption and GDP in Thailand: evidence from the bounds test |
English Title: | Causal linkages between electricity consumption and GDP in Thailand: evidence from the bounds test |
Language: | English |
Keywords: | Causality, electricity consumption, economic growth |
Subjects: | 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 Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy |
Item ID: | 60038 |
Depositing User: | Dr. Komain Jiranyakul |
Date Deposited: | 19 Nov 2014 05:42 |
Last Modified: | 10 Oct 2019 12:55 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/60038 |
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