The nexus between electricity consumption and financial development: Further evidence from G-20 countries

Hızarcı, Atike Elanur; Zeren, Feyyaz

doi:10.1016/j.tej.2020.106776

Cited by 9 publications

(1 citation statement)

References 19 publications

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“…They concluded that the effect of electricity consumption in the household and lighting sectors on growth is positive, while the effect of electricity consumption in the industrial sector is negative. Hızarcı and Zeren (2020) examined the relationship between financial development and electricity consumption using electricity consumption and GDP data of G-20 countries excluding Russia, the European Union, Canada and the United Kingdom for the period 1980-2016 and found that there is no co-integration relationship between electricity consumption and financial development, but there is bidirectional causality between these two variables. Chandio et al (2020) examined the relationship between electricity consumption, foreign direct investment and economic progress in Pakistan by using GDP, electricity consumption and foreign direct investment data for the period 1997-2017 and found that there is a significant long-run link between both electricity consumption and foreign direct investment and economic development.…”

Section: Literaturementioning

confidence: 99%

The Relationship Between High-Income Countries in Middle East and North Africa on Energy Consumption and Increase in Gross Domestic Product

Ataş,

Sarısoy,

Bostancı

2024

MAKU IIBFD

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Electricity, which emerged as a secondary energy source, has been one of the important input items in production since its widespread use. In this study, it is analyzed in 7 countries (Bahrain, United Arab Emirates, Israel, Qatar, Qatar, Kuwait, Oman and Saudi Arabia) in the high-income Middle East and North Africa (MENA) countries group. Using data on public and commercial services, residential, industrial, total other sectors (agriculture, transportation), total electricity consumed and GDP for the period 1990-2021, the relationship between sectoral electricity consumption and economic growth is analyzed with the Panel Granger causality test. As a result of the analysis, while there is no long-run relationship between public and commercial services, residential, total other sectors (agriculture, transportation) and total electricity consumed and growth, there is no causality relationship between these variables, while there is a unidirectional causality relationship from growth to electricity consumption in industry. Contrary to previous studies, the reason for the absence of a causality relationship from electricity consumption to GDP growth in this study is that export revenues from natural resources and high-tech products make a significant contribution to the GDP formation of the countries included in the analysis. These results show that, contrary to the same directional relationship between electricity consumption and GDP growth in the literature, it is not valid for natural resource and high technology exporter countries. We can say that the results of the study make an important contribution to the literature in this respect.

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Section: Literaturementioning

confidence: 99%

The Relationship Between High-Income Countries in Middle East and North Africa on Energy Consumption and Increase in Gross Domestic Product

Ataş,

Sarısoy,

Bostancı

2024

MAKU IIBFD

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A controversy on the three fundamental growth determinants in selected CEE countries

Saud

Haseeb

et al. 2021

Environ Sci Pollut Res

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Spatial spillover effects and action paths of electricity consumption driven by China’s financial development based on global co-integration

2022

Environ Sci Pollut Res

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Although studies on the influencing factors of electricity consumption are rich, the focus on the relationship between financial development and electricity consumption is scarce due to the characteristics of financial sector. In fact, the financial development cannot only increase electricity consumption, but also have the spatial spillover effects. Based on the global spatial modelling techniques, the long-term and short-term relationship between financial development and electricity consumption is examined, and the intermediary effect of financial development on electricity consumption through economic growth, urbanization and industrial structure optimization is also verified. Results show that there is a global co-integration relationship between financial development, economic growth, urbanization, industrial structure optimization and China's electricity consumption, rather than a local co-integration relationship. When the short-term change of electricity consumption deviates from the equilibrium state, the global error correction mechanism can promote the unbalanced system to return to equilibrium from time and spatial dimension. This study not only confirms the spatial spillover effects, but also heterogeneous influences of financial development on electricity consumption, which provides new evidence to make relevant policies.

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The nexus between electricity consumption and financial development: Further evidence from G-20 countries

Cited by 9 publications

References 19 publications

The Relationship Between High-Income Countries in Middle East and North Africa on Energy Consumption and Increase in Gross Domestic Product

The Relationship Between High-Income Countries in Middle East and North Africa on Energy Consumption and Increase in Gross Domestic Product

A controversy on the three fundamental growth determinants in selected CEE countries

Spatial spillover effects and action paths of electricity consumption driven by China’s financial development based on global co-integration

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