Exploring the role of energy, trade and financial development in explaining economic growth in South Africa: A revisit

Kumar, Ronald Ravinesh, Stauvermann, Peter Josef, Loganathan, Nanthakumar, & Kumar, Radika Devi (2015) Exploring the role of energy, trade and financial development in explaining economic growth in South Africa: A revisit. Renewable and Sustainable Energy Reviews, 52, pp. 1300-1311.

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South Africa is an emerging and industrializing economy which is experiencing remarkable progress. We contend that amidst the developments in the economy, the role of energy, trade openness and financial development are critical. In this article, we revisit the pivotal role of these factors. We use the ARDL bounds [72], the Bayer and Hanck [11] cointegration techniques, and an extended Cobb–Douglas framework, to examine the long-run association with output per worker over the sample period 1971–2011. The results support long-run association between output per worker, capital per worker and the shift parameters. The short-run elasticity coefficients are as follows: energy (0.24), trade (0.07), financial development (−0.03). In the long-run, the elasticity coefficients are: trade openness (0.05), energy (0.29), and financial development (−0.04). In both the short-run and the long-run, we note the post-2000 period has a marginal positive effect on the economy. The Toda and Yamamoto [91] Granger causality results show that a unidirectional causality from capital stock and energy consumption to output; and from capital stock to trade openness; a bidirectional causality between trade openness and output; and absence (neutrality) of any causality between financial development and output thus indicating that these two variables evolve independent of each other.

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ID Code: 88919
Item Type: Journal Article
Refereed: Yes
Additional URLs:
DOI: 10.1016/j.rser.2015.07.188
ISSN: 1364-0321
Subjects: Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > APPLIED ECONOMICS (140200) > Applied Economics not elsewhere classified (140299)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Economics & Finance
Copyright Owner: Copyright 2015 Elsevier
Copyright Statement: Licensed under the Creative Commons Attribution; Non-Commercial; No-Derivatives 4.0 International. DOI:
Deposited On: 12 Oct 2015 00:01
Last Modified: 20 Oct 2015 08:23

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