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Economic Change and Restructuring

, Volume 48, Issue 2, pp 119–135 | Cite as

Nexus between electricity consumption and economic growth: a study of Gibraltar

  • Ronald Ravinesh Kumar
  • Peter Josef Stauvermann
  • Arvind Patel
Article

Abstract

In this paper, we examine the long-run cointegration relationship between electricity consumption and GDP per capita in Gibraltar over the period 1996–2012. We examine the short-run and long-run and the causality nexus. The results show electricity consumption has a long run association with the output per capita at levels. Moreover, we note a statistically significant coefficient of electricity consumption the short run (0.53) and in the long-run (1.46). Moreover, a unidirectional causality running form electricity consumption to GDP per capita is noted. Hence, electricity consumption causes income growth in the economy and therefore we recommend efficient use of electricity consumption in key productive sectors of the economy as a way forward to spur growth in the small semi-sovereign economy of Gibraltar.

Keywords

Electricity ARDL cointegration and causality Gibraltar 

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Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  • Ronald Ravinesh Kumar
    • 1
  • Peter Josef Stauvermann
    • 2
  • Arvind Patel
    • 3
  1. 1.FBE Green House, School of Accounting and Finance, Faculty of Business and EconomicsThe University of the South PacificSuvaFiji
  2. 2.Department of EconomicsChangwon National UniversityChangwonRepublic of Korea
  3. 3.Administration Office, School of Accounting and Finance, Faculty of Business and EconomicsThe University of the South PacificSuvaFiji

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