The Nexus Between Electricity Consumption And Output In Malaysia: Evidence From Panel Data Analysis
This paper examines the relationship between electricity and output in Malaysia. We employ panel data analysis to seek concrete evidence in exploring the relationship between electricity consumption and output. We use panel data for 3 economic divisions in Malaysia, namely Peninsular Malaysia, Sab...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
IJAS
2015
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/12864/1/Dzul%20Hadzwan%20Husaini.pdf http://ir.unimas.my/id/eprint/12864/ |
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| Summary: | This paper examines the relationship between electricity and output in Malaysia. We employ panel data
analysis to seek concrete evidence in exploring the relationship between electricity consumption and
output. We use panel data for 3 economic divisions in Malaysia, namely Peninsular Malaysia, Sabah
and Sarawak for the period 2000-2013. We found that the bidirectional relationship between electricity
consumption and output exists. In addition, electricity consumption and output have positive
relationships. According to ceteris paribus assumption, we can say that at 1% increase of electricity
consumption, it will cause a 0.71% increase of output growth. On the other hand, for every 1%
increases of output growth, it causes a 1.41% increase of electricity consumption. Comparatively, the
output growth causes much impact to the electricity consumption rather than the electricity
consumption causes the output growth. In sum, we can say that electricity consumption is not driving
much to output growth. However, an additional output produced requires much electricity in input
production. Thus, our empirical result suggests that the efficiency of electricity usage needs to be
improved to ensure an increase of electricity consumption is able to translate rapid output growth in
Malaysia. |
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