Abstract
This paper aims to examine the impact of electricity consumptionon economic growth in Jordan using annual data over the period 1985-2013.To achieve the goal, an Autoregressive Distributed Lag (ARDL) approach isimplemented to estimate a logarithmic form of the traditional production function(Cobb-Douglas), where output is a function of electricity, capital and labour.According to the results of the estimation,the estimated long-run elasticitiesof output with respect to electrical energy, capital and labor are 0.742, 0.194and 0.422, respectively; while the short-run estimates are 0.330, 0.086, and0.343, respectively. Granger-Causality test has shown a positive unidirectionalrelationship directed from electrical energy consumption towards economicgrowth supporting the hypothesis.
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