The impact of electricity consumption on economic growth in Malaysia: evidence from ARDL bounds testing
This paper investigates the relationship between electricity consumption and economic growth in Malaysia during the period 1971-2014. The results from the ARDL bounds testing approach, as developed by Pesaran et al. (2001), showed that there was a cointegration between electricity consumption and re...
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| Format: | Article |
| Language: | English |
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Penerbit UKM, Universiti Kebangsaan Malaysia
2018
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| Online Access: | http://psasir.upm.edu.my/id/eprint/74193/ http://psasir.upm.edu.my/id/eprint/74193/1/The%20impact%20of%20electricity%20consumption.pdf |
| _version_ | 1848857452383043584 |
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| author | Ahmad Kamal, Muhammad Khalid Mazlan, Nur Syazwani |
| author_facet | Ahmad Kamal, Muhammad Khalid Mazlan, Nur Syazwani |
| author_sort | Ahmad Kamal, Muhammad Khalid |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This paper investigates the relationship between electricity consumption and economic growth in Malaysia during the period 1971-2014. The results from the ARDL bounds testing approach, as developed by Pesaran et al. (2001), showed that there was a cointegration between electricity consumption and real Gross Domestic Product (GDP). There was also a stable long-run relationship between other determinants such as foreign direct investment (FDI) and real GDP. Moreover, we found that electricity consumption, FDI, and real capital positively affected economic growth in the short-run. Therefore, it is recommended that policies should be geared towards improving current energy production and encouraging the exploration of alternative energy sources in order to promote growth in the Malaysian economy. |
| first_indexed | 2025-11-15T11:57:46Z |
| format | Article |
| id | upm-74193 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T11:57:46Z |
| publishDate | 2018 |
| publisher | Penerbit UKM, Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-741932021-09-26T11:02:39Z http://psasir.upm.edu.my/id/eprint/74193/ The impact of electricity consumption on economic growth in Malaysia: evidence from ARDL bounds testing Ahmad Kamal, Muhammad Khalid Mazlan, Nur Syazwani This paper investigates the relationship between electricity consumption and economic growth in Malaysia during the period 1971-2014. The results from the ARDL bounds testing approach, as developed by Pesaran et al. (2001), showed that there was a cointegration between electricity consumption and real Gross Domestic Product (GDP). There was also a stable long-run relationship between other determinants such as foreign direct investment (FDI) and real GDP. Moreover, we found that electricity consumption, FDI, and real capital positively affected economic growth in the short-run. Therefore, it is recommended that policies should be geared towards improving current energy production and encouraging the exploration of alternative energy sources in order to promote growth in the Malaysian economy. Penerbit UKM, Universiti Kebangsaan Malaysia 2018 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/74193/1/The%20impact%20of%20electricity%20consumption.pdf Ahmad Kamal, Muhammad Khalid and Mazlan, Nur Syazwani (2018) The impact of electricity consumption on economic growth in Malaysia: evidence from ARDL bounds testing. Jurnal Ekonomi Malaysia, 52 (1). 205- 214. ISSN 0126-1962; ESSN: 2716-6058 https://www.ukm.my/jem/article/the-impact-of-electricity-consumption-on-economic-growth-in-malaysia-evidence-from-ardl-bounds-testing/ http://dx.doi.org/10.17576/JEM-2018-5201-17 |
| spellingShingle | Ahmad Kamal, Muhammad Khalid Mazlan, Nur Syazwani The impact of electricity consumption on economic growth in Malaysia: evidence from ARDL bounds testing |
| title | The impact of electricity consumption on economic growth in Malaysia: evidence from ARDL bounds testing |
| title_full | The impact of electricity consumption on economic growth in Malaysia: evidence from ARDL bounds testing |
| title_fullStr | The impact of electricity consumption on economic growth in Malaysia: evidence from ARDL bounds testing |
| title_full_unstemmed | The impact of electricity consumption on economic growth in Malaysia: evidence from ARDL bounds testing |
| title_short | The impact of electricity consumption on economic growth in Malaysia: evidence from ARDL bounds testing |
| title_sort | impact of electricity consumption on economic growth in malaysia: evidence from ardl bounds testing |
| url | http://psasir.upm.edu.my/id/eprint/74193/ http://psasir.upm.edu.my/id/eprint/74193/ http://psasir.upm.edu.my/id/eprint/74193/ http://psasir.upm.edu.my/id/eprint/74193/1/The%20impact%20of%20electricity%20consumption.pdf |