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Electricity consumption and economic growth:a revisit study of their causality in Malaysia

Mohd Thas Thaker, Mohamed Asmy and Mohd Thas Thaker, Hassanudin and Amin, Md Fouad and Allah Pitchay, Anwar (2019) Electricity consumption and economic growth:a revisit study of their causality in Malaysia. Etikonomi Jurnal Ekonomi, 18 (1). pp. 1-12. ISSN 1412-8969

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Abstract

The role of electricity towards the economy becomes crucial in many countries including in Malaysia. It becomes necessary to investigate whether electricity consumption contributes to economic growth in order to make appropriate energy policies. The purpose of this research is to examine the long run and causal relationships between electric power consumption and real GDP. This paper applies to the error-correction model. The results indicate that electricity consumption has a positive impact on economic growth. Besides that, there was unidirectional Granger causality running from electricity consumption to real GDP but not vice versa. This paper suggests that Malaysia is becoming an energy-dependent country. The government should emphasize on formulating energy strategies so as to avoid adverse effects on economic growth. **************************************************************************************************** Peran listrik terhadap ekonomi menjadi sangat penting di banyak negara termasuk di Malaysia. Menjadi perlu untuk menyelidiki apakah konsumsi listrik berkontribusi pada pertumbuhan ekonomi untuk membuat kebijakan energi yang tepat. Tujuan dari penelitian ini adalah untuk menguji hubungan jangka panjang dan kausal antara konsumsi daya listrik dan PDB riil. Penelitian ini menerapkan model koreksi kesalahan (ECM). Hasil menunjukkan bahwa konsumsi listrik memiliki dampak positif pada pertumbuhan ekonomi. Selain itu, ada kausalitas Granger searah yang berjalan dari konsumsi listrik ke PDB riil tetapi tidak sebaliknya. Makalah ini menunjukkan bahwa Malaysia menjadi negara yang bergantung pada energi. Pemerintah harus menekankan pada merumuskan strategi energi untuk menghindari dampak buruk pada pertumbuhan ekonomi.

Item Type: Article (Journal)
Additional Information: 7210/71858
Uncontrolled Keywords: electricity consumption, economic growth, granger causality konsumsi daya listrik, pertumbuhan ekonomi, kausalitas granger
Subjects: H Social Sciences > H Social Sciences (General)
Kulliyyahs/Centres/Divisions/Institutes: Kulliyyah of Economics and Management Sciences
Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User: Dr Mohamed Asmy Bin Mohd Thas Thaker
Date Deposited: 29 Apr 2019 09:16
Last Modified: 12 Jul 2019 10:19
URI: http://irep.iium.edu.my/id/eprint/71858

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