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The electricity consumption, employment and growth nexus: evidence from Lebanon

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  • Ali Fakih
  • Walid Marrouch

Abstract

The causal relationship between electricity consumption and growth in Lebanon is examined using aggregate employment in a trivariate setting for the period 1980–2011. We test the main hypothesis that electricity is an input in the aggregate production function. Our results reject the input hypothesis in Lebanon in both the short run and long run. However, electricity is found to be a by-product only when we employ a stronger test for Granger causality. These results seem to suggest that electricity conservation strategies should be easier to implement without additional sacrifices to growth in Lebanon. By contrast, we find evidence of a long-run relationship between employment and growth. We offer some specific detailed strategy to Lebanon that provides support for carrying out policies that increase the level of labour-promoting investments in the country.

Suggested Citation

  • Ali Fakih & Walid Marrouch, 2015. "The electricity consumption, employment and growth nexus: evidence from Lebanon," OPEC Energy Review, Organization of the Petroleum Exporting Countries, vol. 39(3), pages 298-321, September.
    • Handle: RePEc:bla:opecrv:v:39:y:2015:i:3:p:298-321
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    File URL: http://hdl.handle.net/10.1111/opec.12053
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    Cited by:

    1. Fakih, Ali & Makdissi, Paul & Marrouch, Walid & Tabri, Rami V. & Yazbeck, Myra, 2020. "Confidence in public institutions and the run up to the October 2019 uprising in Lebanon," Working Papers 2020-02, University of Sydney, School of Economics.
    2. Wen-Chi Liu, 2020. "The Relationship between Primary Energy Consumption and Real Gross Domestic Product: Evidence from Major Asian Countries," Sustainability, MDPI, vol. 12(6), pages 1-16, March.
    3. Cheratian, Iman & Goltabar, Saleh, 2017. "Energy Consumption and Regional Economic Growth: The Case of Iranian Manufacturing Sector," MPRA Paper 78315, University Library of Munich, Germany.
    4. Ghassan Dibeh & Ali Fakih & Walid Marrouch, 2020. "Tourism–growth nexus under duress: Lebanon during the Syrian crisis," Tourism Economics, , vol. 26(3), pages 353-370, May.
    5. Khraief, Naceur & Shahbaz, Muhammad & Mallick, Hrushikesh & Loganathan, Nanthakumar, 2016. "Estimation of Electricity Demand Function for Algeria: Revisit of Time Series Analysis," MPRA Paper 74870, University Library of Munich, Germany, revised 01 Nov 2016.

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