Do Electricity Consumption and International Trade Openness Boost Economic Growth in Sudan? Empirical Analysis From Bounds Test to Cointegration Approach

Elfaki, Khalid Eltayeb; Anwar, Nurul; Arintoko, Arintoko

doi:10.32479/ijeep.9374

Cited by 9 publications

(10 citation statements)

References 34 publications

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“…Nonetheless, since the related research of Kraft and Kraft (1978), primary energy use has led to economic development in the USA. This is in line with the energy-induced growth hypothesis, in which energy is an important contributor to both advanced and emerging economies' economic growth (EIA, 2018). Understanding and quantifying the energy-growth connection has crucial consequences for policymakers to advance adequate planning for productive energy use.…”

Section: Theoretical Frameworksupporting

confidence: 71%

“…In addition, renewable energy Granger causes economic growth. The study by Elfaki et al (2020) in Sudan established a positive association between electricity consumption and economic growth. Moreover, trade openness positively affects economic growth.…”

Section: Energy Consumption and Economic Growthmentioning

confidence: 98%

“…The four vital factors for economic development are energy, technology, capital, and labor (Kraft & Kraft, 1978). The demand for primary energy, which is true for both advanced and developing economies including Mexico, will continue to rise (approximately 1.4% per year until 2035) (EIA, 2020). Energy is a major contributor to the transport, distribution, and production of almost all services and goods (Energy Information Administration [EIA], 2019).…”

Section: Introductionmentioning

confidence: 99%

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Another outlook into energy‐growth nexus in Mexico for sustainable development: Accounting for the combined impact of urbanization and trade openness

Adebayo

Bekun

Öztürk

et al. 2023

Natural Resources Forum

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This study corroborates the importance of United Nations Sustainable Development Goal 7 (SDG‐7), intended to ensure access to affordable, reliable, sustainable energy for all, and SDG‐8, designed to promote decent work and sustainable economic growth. This article is motivated by the highlighted SDGs and empirically explores the long‐run and causality relationship between energy consumption, urbanization, trade openness, and economic growth for annual frequency data from 1965 to 2021 for the case of Mexico. To this end, we leverage the use of fully modified ordinary least squares, dynamic ordinary least squares, and canonical regression estimation methods, while for the direction of causality, the gradual shift and wavelet coherence methods are used. According to the Autoregressive distributed lag (ARDL), the bounds test traces a long‐run relationship between the outlined variables over the sampled period. Empirical evidence validates the energy‐induced growth hypothesis. This result resonates with the causality analysis, where energy consumption drives economic growth one way in Mexico. This suggests that Mexico cannot embark on energy‐conservative policies, as such actions will hurt economic progress. In addition, unidirectional causality is seen between urbanization, trade openness, and economic growth. These findings have far‐reaching implications for economic growth and macroeconomic indicators in Mexico. More insights are highlighted in the concluding section.

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Section: Theoretical Frameworksupporting

confidence: 71%

Section: Energy Consumption and Economic Growthmentioning

confidence: 98%

Section: Introductionmentioning

confidence: 99%

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Another outlook into energy‐growth nexus in Mexico for sustainable development: Accounting for the combined impact of urbanization and trade openness

Adebayo

Bekun

Öztürk

et al. 2023

Natural Resources Forum

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“…The ARDL model has been widely used in economic and financial research. Since the emergence of the model introduced by Pesaran and Shin (1999) and Pesaran, Shin, and Smith (2001), the ARDL model has been widely used, and in macroeconomic and financial research it has been popularly used, among them by Elfaki et al (2020), Hatmanu et al (2020), Abonazel and Elnabawy (2020), and Nguyen and Ngoc (2020). The use of the ARDL model has become popular because the ARDL approach is a method for testing the cointegrating relationship between the analyzed variables.…”

Section: Methodsmentioning

confidence: 99%

Does Monetary Transmission Effective? Evidence from Indonesia

Arintoko

2021

EDAJ

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This study aims to examine the effects of monetary policy in Indonesia on real variables represented by output and nominal variables represented by inflation. This research is based on an autoregressive distributed model (ARDL) approach which includes lag for the dependent variable and its explanatory variables as regressors. So it is appropriate to analyze time-series data dynamically. Monetary policy variables include deposit interest rate, lending interest rate, asset/stock price, and exchange rate. The results show that the deposit interest rate has a negative effect on inflation in the short run, meanwhile, the lending interest rate has a negative effect on inflation in the long run. Also, the lending interest rate has an effective effect on output in the short run. This study also proves that stock price has a positive effect on the monetary transmission to inflation. This is an important finding considering that the value of assets and individual wealth can affect aggregate demand. These findings have implications for the importance of monetary policy as a policy of stabilizing inflation and output in the short run and stabilizing inflation in the long run by emphasizing the interest rate channel, in addition to seeing the importance of the asset price channel.

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“…It suggests that electricity plays an essential role in business, learning, and others to support family income. The significance of electricity energy for households' livelihood and income as well as education has been studied by Leach, 1987;1988;Matinga and Annegarn, 2013;Shahbaz et al, 2013;Phoumin and Kimura, 2019;Birol, 2007;Gebru and Bezu, 2014;Amaluddin, 2020. Elfaki et al (2020 state that there is a reciprocal relationship between electricity consumption, international trade openness, and economy in Sudan.…”

Section: Introductionmentioning

confidence: 99%

Determination of Consumer Switching Barriers to Use Prepaid Electricity Systems in the Household Sector in Makassar, Indonesia

Karim¹,

Tajibu²,

Akhmad

2020

IJEEP

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A new alternative of electricity bill payment exists in Indonesia at present, namely prepaid systems. The system is intended to facilitate customers in electricity saving where the electricity utilization could be adjusted. In reality, however, post-paid electricity system utilization still receives great demand. As a consequence, it could not suppress electricity consumption. This research aims to learn factors inhibiting consumers to switch to prepaid electricity systems for their electricity consumption. A descriptive research carries out to answer the research problems. Sample consists of 100 people determined via a snowball sampling technique. Data collection is conducted using questionnaires and measured using Likert Scale of 1-5. Factory analysis is used as an analysis tool. The research results indicate that the main factor that becomes a barrier for electricity customers to switch to prepaid systems is habitual using factor. Switching cost factor, lack of prepaid system information, and relationship and reputation of post-paid products are the second, third, and fourth factors, respectively.

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Do Electricity Consumption and International Trade Openness Boost Economic Growth in Sudan? Empirical Analysis From Bounds Test to Cointegration Approach

Cited by 9 publications

References 34 publications

Another outlook into energy‐growth nexus in Mexico for sustainable development: Accounting for the combined impact of urbanization and trade openness

Another outlook into energy‐growth nexus in Mexico for sustainable development: Accounting for the combined impact of urbanization and trade openness

Does Monetary Transmission Effective? Evidence from Indonesia

Determination of Consumer Switching Barriers to Use Prepaid Electricity Systems in the Household Sector in Makassar, Indonesia

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