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Energy Consumption, Finance and Growth: The Role of Urbanization and Industrialization in South Africa

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  • Hasan Gungor

    (Department of Economics, Eastern Mediterranean University, North Cyprus,)

  • Angela Uzoamaka Simon

    (Department of Economics, Eastern Mediterranean University, North Cyprus)

Abstract

The paper investigates the relationship between energy consumption, financial development (FD), economic growth, industrialization and urbanization in the case of South Africa for the period of 1970-2014. The study employs Johansen co-integration test and vector error correction model with granger causality test as estimation techniques. The results confirm that there is a long-run equilibrium relationship between these variables in case of South Africa. More so, urbanization, FD, and industrialization are positively correlated to the energy consumption in the long run. The results obtained also shows the long run bi-directional causality between industrialization and energy utilization, FD and energy consumption and also FD and industrialization.

Suggested Citation

  • Hasan Gungor & Angela Uzoamaka Simon, 2017. "Energy Consumption, Finance and Growth: The Role of Urbanization and Industrialization in South Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 7(3), pages 268-276.
    • Handle: RePEc:eco:journ2:2017-03-32
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    Cited by:

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    2. Abdulrahman M. Alsobhi, 2023. "Using Artificial Neural Networks to Recognize the Determinants of Energy Consumption in Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 489-493, May.
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    5. Mo Bi & Zhenke Zhang, 2024. "Exploring the Path of Autonomous Development: the Development Dilemma and Coping Strategies of Sub-Saharan Africa in the Post-epidemic Era," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 5043-5071, March.
    6. Mohammed Musah & Yusheng Kong & Isaac Adjei Mensah & Stephen Kwadwo Antwi & Mary Donkor, 2021. "The connection between urbanization and carbon emissions: a panel evidence from West Africa," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(8), pages 11525-11552, August.
    7. Khan, Muhammad Tariq Iqbal & Yaseen, Muhammad Rizwan & Ali, Qamar, 2019. "Nexus between financial development, tourism, renewable energy, and greenhouse gas emission in high-income countries: A continent-wise analysis," Energy Economics, Elsevier, vol. 83(C), pages 293-310.
    8. Liting Zhu & K M Atikur Rahman, 2020. "Impact of Purchasing Power Parity and Consumption Expenditure Rise on Urban Solid Waste Generation in China," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 10(9), pages 458-470, September.
    9. Basakha, Mehdi & Hossein Mohaqeqi Kamal, Seyed, 2019. "Industrial development and social welfare: A case study of Iran," Socio-Economic Planning Sciences, Elsevier, vol. 68(C).
    10. Muhammad Fikry Hadi & Muhammad Hidayat & Dwi Widiarsih & Neng Murialti, 2021. "The Role of Electricity and Energy Consumption Influences Industrial Development between Regions in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 403-408.
    11. Ayobami Abayomi Popoola & Hangwelani Hope Magidimisha, 2019. "Rural Energy Conditions in Oyo State: Present and Future Perspectives on the Untapped Resources," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 419-432.
    12. Khalid Eltayeb Elfaki & Rossanto Dwi Handoyo & Kabiru Hannafi Ibrahim, 2021. "The Impact of Industrialization, Trade Openness, Financial Development, and Energy Consumption on Economic Growth in Indonesia," Economies, MDPI, vol. 9(4), pages 1-13, November.
    13. Chigozie Nelson Nkalu & Samuel Chinwero Ugwu & Fredrick O. Asogwa & Mwuese Patricia Kuma & Queen O. Onyeke, 2020. "Financial Development and Energy Consumption in Sub-Saharan Africa: Evidence From Panel Vector Error Correction Model," SAGE Open, , vol. 10(3), pages 21582440209, July.
    14. Yasemin Dumrul, 2018. "Estimating the Impact of the Financial Development on Energy Consumption: A Co-integration Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 8(5), pages 294-299.
    15. Yilmaz Bayar & Mehmet Hilmi Ozkaya & Laura Herta & Marius Dan Gavriletea, 2021. "Financial Development, Financial Inclusion and Primary Energy Use: Evidence from the European Union Transition Economies," Energies, MDPI, vol. 14(12), pages 1-14, June.

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    More about this item

    Keywords

    Energy; Finance; Growth; Time Series;
    All these keywords.

    JEL classification:

    • B26 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Financial Economics
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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