Electricity Consumption, Economic Growth, Urbanization and Trade Nexus; Empirical Analysis From the MINT Countries

Electricity Consumption, Economic Growth, Urbanization and Trade Nexus; Empirical Analysis From the MINT Countries

Chapter One

Research Objectives

The study aims to examine the nexus between electricity consumption, economic growth, urbanization and trade nexus in MINT countries. The specific objectives are

1. To examine the effect of electricity consumption on economic growth
2. To investigate the impact of trade on economic growth in MINT countries
3. To evaluate the influence of urbanisation on economic growth in MINT countries
4. To assess the combined effect of electricity consumption, urbanisation and trade on economic growth in MINT countries

Chapter Two

Literature Review

Electricity is one of the most important sectors and plays a major role in the economic development of many countries. It is a multifaceted sector that supports the development of a wide range of products and services, playing an active role in improving living standards, increasing productivity and efficiency, and encouraging investors and entrepreneurial activities. The electricity sector has a close relationship with real GDP (gross domestic product) per capita and, on the basis of the facts mentioned above, both the real per capita GDP and electricity consumption are highly correlated, which has been extensively documented by World Bank (2018a) in a study covering approximately 100 countries. Iceland has a significant manufacturing sector, making electricity consumption in that country one of the highest compared with the rest of the world. The source of electricity production in Iceland is predominantly hydroelectric and geothermal energy.

The most important aspect of this issue is the investigation and gathering of sufficient knowledge on the causality direction between GDP and electricity consumption (EC), with a view to devising appropriate policies for future energy and energy conservation measures. The central theme of the debate revolves around whether electricity consumption promotes or retards economic growth. The utilisation of modern energy in the production process, along with capital and labour, is considered as a pre-requisite for social, economic and technological progress (World Bank, 2018b).

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