ICT, Financial Development, Economic Growth and Electricity Consumption: New Evidence from Malaysia


Solarin, Sakiru Adebola and Shahbaz, Muhammad and Khan, Habib Nawaz and Razali, Radzuan (2021) ICT, Financial Development, Economic Growth and Electricity Consumption: New Evidence from Malaysia. Global Business Review, 22 (4). pp. 941-962. ISSN 0972-1509

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This article investigates the impact of information and communication technology (ICT), financial development and economic growth on electricity consumption for Malaysian economy, utilizing quarter frequency data for the period of 1990-2015. In order to examine the long-run relationship, a cointegration approach that provides for structural break is applied. The causal relationship between the variables is investigated by employing Toda-Yamamoto Granger causality approach, and robustness of causality results is confirmed by the innovative accounting method. The results provide evidence for the presence of cointegration between the variables. ICT has positive effect on electricity consumption. Financial development increases electricity consumption. Economic growth is positively associated with electricity consumption. The causality analysis indicates the feedback effect between ICT and electricity consumption. The bidirectional causality is found between economic growth and electricity consumption. Financial development causes electricity consumption and electricity consumption in turn causes financial development in Granger sense. This article opens fresh insights for policymakers to utilize ICT, financial development and economic growth as economic tools for sustainable economic development.

Item Type: Article
Uncontrolled Keywords: Electric power production
Subjects: T Technology > TK Electrical engineering. Electronics Nuclear engineering > TK1001-1841 Production of electric energy or power. Powerplants. Central stations
Divisions: Faculty of Business (FOB)
Depositing User: Ms Nurul Iqtiani Ahmad
Date Deposited: 30 Aug 2021 11:44
Last Modified: 30 Aug 2021 11:44
URII: http://shdl.mmu.edu.my/id/eprint/9482


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