Panel cointegration: Long-run relationship between internet, electricity consumption and economic growth. Evidence from OECD countries

Kirikkaleli D., Sokri A., Candemir M., ERTUĞRUL H. M.

INVESTIGACION ECONOMICA, vol.77, no.303, pp.161-176, 2018 (SSCI) identifier identifier


The linkage between electricity consumption, internet demand and economic growth is aimed to investigate in this study in 35 OECD countries for the period 1993-2014. Panel cointegration, Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS) and Dumitrescu-Hurlin causality tests were performed to capture the potential long-run and causal linkages among the three variables. The findings from the FMOLS and DOLS models indicate a positive linkage between electricity, internet demand and economic growth in the long-run. Results from the Dumitrescu-Hurlin causality confirm feedback causality between electricity consumption and internet demand and unilateral causality running from economic growth to electricity consumption.