The effect of electric consumption on economic growth in Malaysia / Mohd Zulhaimi Ahmad

This paper studies about the effect of electric consumption on economic growth in Malaysia
by using time series data for the period 1963 until 2017 with 55 observations. There are four
types of analyses. The first test was conducted using the OLS to find out the significant of the
variables and the relationships between independent variables. Next, unit root test by using
ADF and PP test was conducted to find out the stationary of the variables with the level, 1st
difference or 2nd difference. After that, Johansen Co-Integration test was conducted to find out
whether there is a long-run relationship between the variables. After that, Granger Causality
test was conducted to find out whether there is a short-run relationship based from the Johansen
Co-Integration test between the specific variable. Lastly, diagnostic tests is conducted to find
the relationship between the variables by using the autocorrelation and multicollinearity
estimation.