Renewable Energy, Quality of Institutions and Economic Growth in MENA Countries: a Panel Cointegration Approach

Saidi, Hichem and El Montasser, Ghassen and Ajmi, Noomen (2018): Renewable Energy, Quality of Institutions and Economic Growth in MENA Countries: a Panel Cointegration Approach.

Abstract

In this paper, we examine the relationship between renewable energy and economic growth taking into account institutional measures. Using panel cointegration tests, we found that these two variables and any institutional measure, of all considered in this study, are co-integrated. Furthermore, we found a strong causality running from renewable energy and any institutional measure, except for law and order, to growth. A reverse path is also observed since there is also a strong causality running from growth to renewable energy when the causal regression includes any institutional measure. Policy implications are accordingly derived.

• Item Type: MPRA Paper
• Language: English
• Keywords: Cross-section dependence; Panel unit root tests; Panel cointegration tests
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q20 - General

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