Empirical researches on the nexus between renewable energy supply and economic growth have been neglected. To address this gap, this study aims to examine the relationship between hydropower energy supply (HES) and economic growth within a multivariate model for the 1978-2017 period. This study utilized the auto regressive distributive lag (ARDL) bounds approach to testing for cointegration relationship; and the Granger causality test, based on the vector error correction model (VECM) to test for causality. The bounds F-test for cointegration shows that HES, electricity consumption, capital formation and GDP growth share a long-run relationship. | Renewable energy supply and economic growth in Malaysia An application of bounds testing and causality analysis
