The Electricity Consumption, Employment and Growth Nexus: Evidence from Lebanon

24 Pages Posted: 15 Sep 2015

See all articles by Ali Fakih

Ali Fakih

Lebanese American University

Walid Marrouch

Lebanese American University; CIRANO

Date Written: September 2015

Abstract

The causal relationship between electricity consumption and growth in Lebanon is examined using aggregate employment in a trivariate setting for the period 1980–2011. We test the main hypothesis that electricity is an input in the aggregate production function. Our results reject the input hypothesis in Lebanon in both the short run and long run. However, electricity is found to be a by‐product only when we employ a stronger test for Granger causality. These results seem to suggest that electricity conservation strategies should be easier to implement without additional sacrifices to growth in Lebanon. By contrast, we find evidence of a long‐run relationship between employment and growth. We offer some specific detailed strategy to Lebanon that provides support for carrying out policies that increase the level of labour‐promoting investments in the country.

JEL Classification: C32, Q43

Suggested Citation

Fakih, Ali and Marrouch, Walid, The Electricity Consumption, Employment and Growth Nexus: Evidence from Lebanon (September 2015). OPEC Energy Review, Vol. 39, Issue 3, pp. 298-321, 2015. Available at SSRN: https://ssrn.com/abstract=2660544 or http://dx.doi.org/10.1111/opec.12053

Ali Fakih (Contact Author)

Lebanese American University ( email )

P.O.Box 36
Chouran-Beirut 1102 2801
Byblos
Lebanon

Walid Marrouch

Lebanese American University ( email )

P.O. Box 13 - 5053
Chouran-Beirut
Beirut, 1102 2801
Lebanon

CIRANO ( email )

1130 Rue Sherbrooke #1400
Montreal, Quebec H3A 2M8
Canada

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