The Relationship between Electricity Consumption, Foreign Direct Investment and Economic Growth: Case of Benin

Authors

  • Desire Wade Atchike North China Electric Power University
  • Zhen-Yu Zhao North China Electric Power University
  • Geriletu Bao Inner Mongolia Technical College of Construction

Abstract

Using the autoregressive distributed lag (ARDL) bounds test with dummy variables and the Toda-Yamamoto approach; this paper investigated the relationship between electricity consumption, foreign direct investment and economic growth in Benin for the period of 1980-2014. Confirming the growth theory for Benin, the results show evidence of unidirectional causalities from electricity consumption to both economic development and foreign direct investment and a long run relationship with a speed of adjustment of 60.72%. These findings suggest that the government of Benin should target the implementation of new strategies to improve access to electricity in order to attract more foreign investment and achieve a rapid and sustainable economic growth.Keywords:  Electricity Consumption, Foreign Direct Investment, Economic Growth, Benin.JEL Classifications: F21, F43, Q43.DOI: https://doi.org/10.32479/ijeep.9415

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Author Biographies

Desire Wade Atchike, North China Electric Power University

School of Economics and Management, North China Electric Power University, 102206 Beijing, China

Zhen-Yu Zhao, North China Electric Power University

School of Economics and Management, North China Electric Power University, 102206 Beijing, China

Geriletu Bao, Inner Mongolia Technical College of Construction

Inner Mongolia Technical College of Construction, 010070, Huimin District, China

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Published

2020-05-16

How to Cite

Atchike, D. W., Zhao, Z.-Y., & Bao, G. (2020). The Relationship between Electricity Consumption, Foreign Direct Investment and Economic Growth: Case of Benin. International Journal of Energy Economics and Policy, 10(4), 507–515. Retrieved from https://econjournals.com./index.php/ijeep/article/view/9415

Issue

Vol. 10 No. 4 (2020)

Section

Articles

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