Causality analysis between the energy consumption and economic growth in South Asia: An Evidence from Bangladesh

Abstract

The objective of this study is to explore the causality between electricity use and economic growth of Bangladesh. By using the unit root and granger causality tests from 1971 to 2016, this study finds that energy consumption causes GDP growth in Bangladesh. However, our empirical findings indicate that GDP growth does not causes energy consumption indicating that there is an uni-directional causality between these two variables. The policy implication of the result is that Bangladesh need to pay special attention to utilize the energy consumption and identifying the alternative sources of energy generation in order to promote our economic growth.

 

Keywords: Economics Growth, Energy consumption, Granger Causality, Unit Root Test

Article Review Status: Published

Pages: 34-47 (Download PDF)

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