IDEAS home Printed from https://ideas.repec.org/h/spr/eurchp/978-3-319-27573-4_14.html
   My bibliography  Save this book chapter

Macroeconomic Impacts of Electricity Generation on Croatian Real GDP: Causality Analysis

In: Entrepreneurship, Business and Economics - Vol. 2

Author

Listed:
  • Pavle Jakovac

    (University of Rijeka)

  • Nela Vlahinic Lenz

    (University of Rijeka)

  • Sasa Zikovic

    (University of Rijeka)

Abstract

This paper examines the causal relationship between electricity generation and economic growth in Croatia using data for the period 1966–2010. The analyzed time span includes the periods of both the socialist and market based economy. Based on a detailed review of previous empirical studies it is possible to conclude that this issue has not been systematically explored and analyzed using Croatia as an example. In our analysis, we use a multivariate model (a conventional multifactor neoclassical aggregate production function) of real GDP and electricity generation together with capital stock, employment and technological progress. In order to get robust results this paper applies the autoregressive distributed lag (ARDL) cointegration procedure with a time break as an appropriate quantitative method when analyzing small samples. The empirical results provide clear support of a unidirectional causality that runs from electricity generation to real GDP in both short- and long-term. Electricity generation has a positive and statistically significant impact on Croatian real GDP. This means that stable, adequate and uninterrupted electricity supply is one of the crucial determinants of Croatia’s economic growth. Croatia should adopt a more vigorous economic policy that should aim to increase investments in the electricity infrastructure.

Suggested Citation

  • Pavle Jakovac & Nela Vlahinic Lenz & Sasa Zikovic, 2016. "Macroeconomic Impacts of Electricity Generation on Croatian Real GDP: Causality Analysis," Eurasian Studies in Business and Economics, in: Mehmet Huseyin Bilgin & Hakan Danis (ed.), Entrepreneurship, Business and Economics - Vol. 2, edition 1, pages 209-230, Springer.
    • Handle: RePEc:spr:eurchp:978-3-319-27573-4_14
    DOI: 10.1007/978-3-319-27573-4_14
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Koščak Kolin, Sonja & Karasalihović Sedlar, Daria & Kurevija, Tomislav, 2021. "Relationship between electricity and economic growth for long-term periods: New possibilities for energy prediction," Energy, Elsevier, vol. 228(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:eurchp:978-3-319-27573-4_14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.