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Multivariate Cointegration and Causality between Exports, Electricity Consumption and Real Income per Capita: Recent Evidence from Japan

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  • Janesh Sami

    (College of Business, Hospitality and Tourism Studies, Fiji National University, Fiji Islands)

Abstract
The current literature on the relationship between electricity, exports and economic growth is mixed. This paper examines the relationship between exports, electricity consumption and real income per capita in Japan using time series data from 1960-2007. We applied bounds testing procedure developed by Pesaran et al., (2001) and found that there is cointegrating relationship between electricity consumption, exports and economic growth. On establishing cointegration, the causal relationship electricity consumption, exports and economic investigation was investigated within a Vector Error Correction Model (VECM) framework. We found that in the long run, there is causality from exports and real GDP per capita to electricity consumption.

Suggested Citation

  • Janesh Sami, 2011. "Multivariate Cointegration and Causality between Exports, Electricity Consumption and Real Income per Capita: Recent Evidence from Japan," International Journal of Energy Economics and Policy, Econjournals, vol. 1(3), pages 59-68, November.
    • Handle: RePEc:eco:journ2:2011-03-1
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    More about this item

    Keywords

    Exports; Electricity consumption; Real Income per capita; Japan;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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