Nexus between Electricity Generation and Economic Growth in Bangladesh

Abstract

This paper employs Granger-causality test on the nexus between economic growth and electricity generation using Bangladesh data covering the period 1973-2006. The test results indicate that only unidirectional causal relationship exists between electricity generation and economic growth. The short run causal relationship is found from electricity generation to economic growth. Policies and strategies for increasing electricity generation can therefore be implemented for speeding up of economic growth in the country.