Journal of Modern Mathematics and Statistics
ISSN: OnlineISSN: Print 1994-5388
Abstract
This study examines the long-run and short-run causal relationship among the petrol consumption, electricity consumption and GDP in South Africa using 16 years quarterly data (2005Q1-2020Q2). The results show that electricity and GDP are integrated of the same order, I(1) while petrol is integrated of order zero. There exists a long-run relationship between petrol and GDP models. Only the petrol model system returns to equilibrium with adjustment speed of 128.4%. Petrol and electricity models are found to be stable and significant with no defects, GDP Model is also stable but insignificant and its residuals are not normally distributed. A unidirectional causality runs from GDP to petrol and electricity. However, petrol and electricity do granger cause each other. have and there is no long-run relationship between them. In the short and long run, GDP has a significant negative impact on electricity and petrol consumption in South Africa, respectively.
How to cite this article:
Matthew Femi Olayiwola. Energy Consumption and Economic Growth in South Africa.
DOI: https://doi.org/10.36478/jmmstat.2021.1.7
URL: https://www.makhillpublications.co/view-article/1994-5388/jmmstat.2021.1.7