Disaggregate energy consumption and industrial production in South Africa

Re-Visting the Electricity-Growth Nexus in South Africa

“…Secondly, from our causality analysis we find that there exist no direct causal effects from electricity consumption to economic growth or from economic growth to electricity consumption. As previously noted, this result is reminiscent of that obtained in the previous studies of Esso (2010), Wolde Rufael (2009) and Ziramba (2009), and implies that movements in either electricity consumption or economic growth does bear an influence upon the counter-variable. Thirdly, we find that inflation is the only catalyst of economic growth whereas exports are the only catalyst of electricity consumption.…”

“…Incidentally, Esso (2010), Wolde Rufael (2009) and Ziramba (2009 also obtain similar results of no causality existing between electricity consumption and economic growth in South Africa. Furthermore, our obtained result of no causal flow from electricity consumption to employment is in alignment with that obtained in Odhiambo (2009).…”

“…As is evident from Table 1, there exists only a handful of empirical studies exclusively conducted for the case of South Africa; and these are limited to Wolde-Rufael (2006), Ziramba (2009), Odhiambo (2009, Esso (2010), Menyah and Wolde-Rufael (2010) and Bildirici et. al.…”

“…However, the studies seem to contradict each other when it comes to causality test results. Take for instance, Esso (2010), Wolde-Rufael (2006) and Ziramba (2009), who having used Toda and Yamamoto (1995) modified Wald test, came to a common consensus of no evidence of causality existing between electricity consumption and economic growth. Hence the implications of their findings are that the consumption of electricity has a minor impact on economic growth of South Africa and vice versa.…”

Causal Relationships between Energy Consumption, Foreign Direct Investment and Economic Growth: Fresh Evidence from Dynamic Simultaneous-Equations Models

“…A large number of studies find a causal relationship between energy consumption and economic growth, especially in OCDE countries Apergis and Payne, 9 2010a), in Eurasia countries (Apergis and Payne, 2010b), in Central American countries (Apergis and Payne, 2012), in South Africa (Ziramba, 2009), in developed countries and developing countries (Sharma, 2010), and in European countries (Ciarreta and Zarraga, 2010).…”