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The electricity consumption and GDP nexus for the Fiji Islands

Narayan, P.K. and Singh, Baljeet (2007) The electricity consumption and GDP nexus for the Fiji Islands. Energy Economics, 29 (6). pp. 1141-1150. ISSN 0140-9883

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Abstract

Fiji is a small open island economy dependent on energy for its growth and development; hence, the relationship between energy consumption and economic growth is crucial for Fiji's development. In this paper, we investigate the nexus between electricity consumption and economic growth for Fiji within a multivariate framework through including the labour force variable. We use the bounds testing approach to cointegration and find that electricity consumption, GDP and labour force are only cointegrated when GDP is the endogenous variable. We use the Granger causality F-test and find that in the long-run causality runs from electricity consumption and labour force to GDP, implying that Fiji is an energy dependent country and thus energy conservation policies will have an adverse effect on Fiji's economic growth.

Item Type: Journal Article
Subjects: H Social Sciences > HD Industries. Land use. Labor
Divisions: Faculty of Business and Economics (FBE) > School of Economics
Depositing User: Ms Mereoni Camailakeba
Date Deposited: 11 Dec 2007 20:56
Last Modified: 30 May 2012 04:30
URI: https://repository.usp.ac.fj/id/eprint/2694

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