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Electricity consumption and GDP nexus in Bangladesh: A time series investigation

Autoregressive Distributed lag (ARDL) “Bound Test” approach is employed for the investigation in this study. Both short-run and long-run coefficients are providing strong evidence of having positive significant association between electricity consumption and GDP. Our long-run results remain robust to different measurements and estimators as well. The study reveals the unidirectional causal flow running from per capita electricity consumption to per capita real GDP in the short run. The study result also yields strong evidence of bidirectional causal relationship between per capita electricity consumption and per capita real GDP in the long run with feedback. It is suggested that both electricity generation and conservation policy will be effective for Bangladesh economy. | Electricity consumption and GDP nexus in Bangladesh A time series investigation