The causality between electricity and economic growth in Malaysia / Stanley Francis

This study investigates the causality between electricity and economic growth in Malaysia by applying annually time series data from 1980-2015. The four hypothesis such as neutrality, conservative, growth and feedback also mentioned the linear relationship between the variables. A Johansen Co-Integration model results confirm that the long run relationship presence between the consumer price index (CPI), gross domestic product (GDP), population growth rate and electricity consumption. Result from mixed findings show the positive and significant effect from electricity consumption to economic growth. The result of Granger causality model examined the unidirectional causal from economic growth driven the electricity consumption in short run. This research need to continue as a contribution body of knowledge to initiate a way for the policymakers to create more access of electricity in Malaysia.