Renewable Electricity Consumption, Foreign Direct Investment and Economic Growth in Egypt: An ARDL Approach☆

By Dalia M. Ibrahiem. 2015

131 citations recorded by the source corpus.

Abstract This study examines the relationship between renewable electricity consumption, foreign direct investment and economic growth in Egypt. In this regard the study used Auto Regressive Distributed Lag (ARDL) bound testing approach over time series data from the period 1980 to 2011. The empirical findings show that the variables in the study are cointegrated indicating the existence of long-run relationship among them. Furthermore, renewable electricity consumption and foreign direct investment have a long-run positive effect on economic growth. Granger causality test shows that there exists unidirectional causality running from foreign direct investment to economic growth, in addition there is bidirectional causality between economic growth and renewable electricity consumption. This result supports feedback hypothesis. The stability of model was also checked at the end.

Subfields: Economics and Econometrics, Information Systems, Pollution

View Paper: https://www.semanticscholar.org/paper/7f78bd26922ab8c18afc0748934de1cb3feb5b0b

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Citations in the corpus

The Effects of Energy Consumption, Economic Growth and Financial Development on CO2 Emissions in China: A VECM Approach (2019, background): “With the introduction of additional variables, the relationship between the three has undergone new changes, such as urbanization [15], trade openness [16], foreign direct investment [17], industrialization [18].”
Nexus between foreign direct investment and economic growth in Bangladesh: an augmented autoregressive distributed lag bounds testing approach (2020, methodology): “Although there are various cointegration approaches, such as Engle and Granger (1987), Johansen (1988), and Johansen and Juselius (1990), the data series must have a unique order of integration for these models to be applied.”
Renewable energy, oil prices, and economic activity: A Granger-causality in quantiles analysis (2018, methodology): “Ibrahiem (2015) used the ARDL bound testing approach to assess the linkage between renewable electricity consumption and economic growth in Egypt over the period from 1980 to 2011.”