Panel cointegration: Long-run relationship between internet, electricity consumption and economic growth. Evidence from OECD countries

Kirikkaleli, Dervis and Sokri, Abderrahmane and Candemir, Mehmet and Ertugrul, Hasan Murat (2017): Panel cointegration: Long-run relationship between internet, electricity consumption and economic growth. Evidence from OECD countries. Published in: Investigación económica , Vol. 303, No. 77 (1 March 2018): pp. 161-176.

Abstract

The linkage between electricity consumption, internet demand and economic growth is aimed to investigate in this study in 35 OECD countries for the period 1993-2014. Panel cointegration, Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS) and Dumitrescu-Hurlin causality tests were performed to capture the potential long-run and causal linkages among the three variables. The findings from the FMOLS and DOLS models indicate a positive linkage between electricity, internet demand and economic growth in the long-run. Results from the Dumitrescu-Hurlin causality confirm feedback causality between electricity consumption and internet demand and unilateral causality running from economic growth to electricity consumption.

• Item Type: MPRA Paper
• Language: English
• Keywords: Panel cointegration; OECD; economic growth; internet; electricity consumption; long-run
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence

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