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Electricity Trade and Economic Growth in South Africa

Author

Listed:
  • Nyiko Worship Hlongwane

    (School of Economics, North-West University, South Africa.)

  • Olebogeng David Daw

    (School of Economics, North-West University, South Africa.)

Abstract

The study investigates the relationship between electricity trade and economic growth in South Africa. The study utilised time series data spanning from 1985 to 2022 collected from secondary sources like the Quantec. The study employed DF-GLS and KPSS unit root, ARDL Bounds cointegration test, ARDL ECM model, Granger causality and residual diagnostics tests. The study discovered the presence of short and long run negative relationships between electricity trade and economic growth in South Africa. The Granger causality revealed unidirectional causality running from economic growth to electricity generation in South Africa. The study recommends the reduction of electricity trade to boost economic growth in South Africa for the period understudy. The study further makes the following recommendations, in future the studies should consider investigating electricity infrastructure and economic growth in South Africa utilising either time series or panel data analysis.

Suggested Citation

  • Nyiko Worship Hlongwane & Olebogeng David Daw, 2023. "Electricity Trade and Economic Growth in South Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 355-364, September.
    • Handle: RePEc:eco:journ2:2023-05-41
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    More about this item

    Keywords

    Electricity Trade; Economic Growth; ARDL Model; Granger Causality; South Africa;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C29 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Other
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment

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