Journal of the Knowledge Economy

, Volume 9, Issue 1, pp 228–238 | Cite as

Causal Dynamics between Energy Consumption, ICT, FDI, and Economic Growth: Case Study of 13 MENA Countries

Article

Abstract

This paper aims to examine the relationship between energy consumption, information technology and communication (ICT), foreign direct investment (FDI), and economic growth using dynamic panel data of 13 MENA countries over the period 1990–2012. Recently developed tests for panel unit-root and co-integration tests are applied, in order to test the Granger causality. Econometric analysis results indicate that there are a bidirectional relationship between energy consumption and economic growth which is also known as the feedback hypothesis, but, there is a bidirectional relationship from ICT to economic growth in both the short run and the long run. However, the results support the existence of a unidirectional causality from economic growth to FDI. This study shows the importance of energy consumption and ITC in determining economic growth.

Keywords

Energy consumption ICT FDI Economic growth Panel co-integration Granger causality test 

Notes

Acknowledgment

The valuable comments from the editor and two anonymous referees have greatly helped improve the exposition of this paper.

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Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  • Kais Saidi
    • 1
  • Mounir Ben Mbarek
    • 1
  • Mounira Amamri
    • 1
  1. 1.Faculty of Economics and ManagementUniversity of SfaxSfaxTunisia

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