Energy Consumption and Economic Growth Nexus: Empirical Evidence from Tunisia

Abstract

This article examines the two-way linkages between energy consumption and economic growth using data from Tunisia over the period 1974-2011. This research tests this interrelationship between variables using the Johansen cointegration technique. Our empirical results show that there exists bidirectional causal relationship between energy consumption and economic growth in the long-run. The study suggests that energy policies should recognize the differences in the nexus between energy consumption and economic growth in order to maintain sustainable economic growth in Tunisia.