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Jurnal Ekonomi Malaysia

52 (1) 2018 205 – 214

The Impact of Electricity Consumption on Economic Growth in Malaysia: Evidence from ARDL Bounds Testing
Kesan Penggunaan Elektrik kepada Pertumbuhan Ekonomi di Malaysia: Bukti dari Pemeriksaan ‘ARDL Bounds’

Fakulti Ekonomi dan Pengurusan
Universiti Putra Malaysia
43400 Serdang Selangor
MALAYSIA


Fakulti Ekonomi dan Pengurusan
Universiti Putra Malaysia
43400 Serdang Selangor
MALAYSIA

nur.syazwani@upm.edu.my

Abstract

This paper investigates the relationship between electricity consumption and economic growth in Malaysia during the period 1971-2014. The results from the ARDL bounds testing approach, as developed by Pesaran et al. (2001), showed that there was a cointegration between electricity consumption and real Gross Domestic Product (GDP). There was also a stable long-run relationship between other determinants such as foreign direct investment (FDI) and real GDP. Moreover, we found that electricity consumption, FDI, and real capital positively affected economic growth in the short-run. Therefore, it is recommended that policies should be geared towards improving current energy production and encouraging the exploration of alternative energy sources in order to promote growth in the Malaysian economy.

Keywords

Auto-Regressive Distributed Lag; economic growth; Electricity consumption
http://dx.doi.org/10.17576/JEM-2018-5201-17
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Khalid, , & Mazlan, (2018). The Impact of Electricity Consumption on Economic Growth in Malaysia: Evidence from ARDL Bounds Testing. Jurnal Ekonomi Malaysia, 52(1), 205–214. http://dx.doi.org/10.17576/JEM-2018-5201-17

@article{khalid2018impact,
  title={The Impact of Electricity Consumption on Economic Growth in Malaysia: Evidence from ARDL Bounds Testing},
  author={Khalid, Muhammad A.K. and Mazlan, Nur Syazwani},
  journal={Jurnal Ekonomi Malaysia},
  volume={52},
  number={1},
  pages={205—214},
 

year={2018},
}

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