Causal Relationship between Economic Growth and Energy Consumption in the Kingdom of Saudi Arabia
Alqudair, Khalid Hamad . 2012
The study examines the long-run equilibrium relationship between energy consumption and economic growth in the Kingdom of Saudi Arabia (1970–2008), using a cointegration technique and the direction of causality relationship for both the long and short run with the vector error correction model (VECM). The cointegration test indicates the existence of a long-run equilibrium relationship between energy consumption and economic growth. The causality test indicates that there is a uni-directional causal relationship that runs from economic growth to energy consumption in the long run and not vice versa. In addition, the causality test indicates the absence of short-run causality between energy consumption and economic growth. Overall, it may be concluded that the results provide support to the conservation hypothesis that entails a positive causality running from economic growth to energy consumption in the long run only.
The study examines the long-run equilibrium relationship between energy consumption and economic growth in the Kingdom of Saudi Arabia (1970–2008), using a cointegration technique and the…
The purpose of the paper is to investigate Saudi Arabia’s current account dynamic based on consumption theory using present value model.