Abstract
Electricity power plays a significant role as an engine factor in boosting economic growth, particularly in developing countries. This paper utilized the autoregressive distributed lag (ARDL) model to study the interrelationship among electricity consumption, international trade openness, and economic growth in Sudan data spanning 1975-2014. The cointegration test result confirms the presence of long run cointegration relationship among electricity consumption, international trade openness, and economic growth. The estimated results of the long run point out that electricity consumption and international trade openness showed a significant positive relationship relating to economic growth. The estimated error correction term coefficient is found to be significant at a 1% significance level with an expected sign. The findings of this paper suggest that Sudan's economy takes advantage of promoting electricity production and more open international trade. Therefore, the policies that support and encourage electricity generation for effective uses are highly recommended. The engagement in international trade creates opportunities for Sudan's economy to benefit from the comparative advantage in exporting some goods that have a comparative advantage in Sudan as well as to import modern technologies particularly, the machineries and equipment relating to agriculture and industrial sectors recently to improve economic growth.Keywords: economic growth, trade openness, electricity consumption, ARDL, Sudan.JEL Classifications: F43, F16, L94DOI: https://doi.org/10.32479/ijeep.9374
Highlights
The dramatic changes in energy issues and increasing demand recently sparked up the attention of national and international institutions and governments both in developed and developing countries to switch to energy use from renewable sources and to reduce the economic and environmental impacts such as pollution consequences, environment conservation and achieving sustainable economic development
From the result of Phillips-Perron (PP), the null hypothesis cannot be rejected for real GDP, trade openness, and electricity consumption at 1% level; this provides enough evidence that real GDP, trade openness, and electricity consumption are stationary at first difference at 1% significance level
Bounds test result confirms the presence of cointegration relationships among electricity consumption, international trade openness, and economic growth
Summary
The dramatic changes in energy issues and increasing demand recently sparked up the attention of national and international institutions and governments both in developed and developing countries to switch to energy use from renewable sources and to reduce the economic and environmental impacts such as pollution consequences, environment conservation and achieving sustainable economic development. Electricity energy became one of the most essential factors influencing the development process the development of agricultural, industrial, and infrastructure sectors. Energy represent the basic ground for economic development. Electricity exemplifies as the most resilient types of energy and shapes one of the basic inputs of social and economic development infrastructure. Kasperowicz (2014) stated that electricity is the most foundation factor that economic growth depends on for Poland. Investment deficiency in infrastructure energy and services consider as one factor that interpret poverty in Africa countries
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