Electricity Consumption and Economic Growth Nexus: A Time Series Analysis for Libya

Abstract

The study investigates the causal relationship between electricity consumption and economic growth in Libya using annual data covering the period from 1990 to 2020. We used Granger causality test framework of vector autoregressive (VAR) model to test the causal relationship between the variables. the results of testing Granger’s causality that runs GDPPC to CPCKW for Libya country does not have causality, from CPCKW to GDPPC also does not have causality, from GDPPC to P does not have Granger causality, and from P to CPCKW no causality. It is also clear from the results that there is a causal relationship from P to GDPPC, and CPCKW to P.