This root tests. The result revealed that all the

This section concludes the study. It summarizes the main conclusions
obtained from the study as well as their policy implications. It further
provides recommendations based on the findings of the study.AK1 

5.1 Summary of the Finding

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         This study used only
2 methods to examine unit root test. It utilizes the Augmented Dickey-Fuller
(ADF) and Phillips-Perron (PP) unit root tests. The result revealed that all the
variables are integrated of order zero, I(0) and integrated of order one, I(1)
and there is no I(2) variable in the models. This study has examined the
relationship between economic growth and electricity consumption by using ARDL
bounds test.

         By using ARDL bounds
test, this study found that long run cointegration relationship exists between
dependent variable and independent variables in the model. For long run
estimation, this study found that the LEC and LFDI are positively related to
economic growth and both are statistically significant. But for LK, there is a positive
relation but its statistically insignificant value indicates that there is no  long run relationship between economic growth.

       This study also found
that there is a short run effect for the model. The error correction term (ECTt-1)
appears to be negative and significant in the ARDL estimates. The coefficient
of the short run indicates that the speed of adjustment back to the long run equilibrium
value are statistically significant.

       The diagnostic tests found that the model is free from any problem from
the normality of the residual, serial correlation, heteroscedasticity and
functional form misspecification. The stability of CUSUM and CUSUM Squares that
are within the critical region indicates that the model is stable.

      The
pairwise Granger causality found that there is a unidirectional causality
running from GDP to electricity consumption. Apart from that, this study also found
that electricity Granger cause FDI. 

5.2 Conclusion

 

This study found that there is a cointegration relationship between
endogenous variable with exogenous variables. Furthermore, from the result, it
can be concluded that electricity consumption and foreign direct investment have
significant impact on the economic growth in Malaysia in the long run and short
run except for capital.

For causality relationship between electricity consumption, foreign
direct investment and economic growth, we can see that there is causality
running from electricity consumption to economic growth. Thus, it indicates that Malaysia is growth hypothesis.

5.3 Policy Implication and
Recommendation

 

      Policy implication and
recommendation can be made through the result obtained from the study. The
result gives invaluable information to 
policymakers and the government. The overall impact of electricity
consumption and economic growth is positive. The change in energy policy will
give impact on the economic output. In Malaysia, our main sources of electricity
generation is liquid fuel and coal to fulfil the energy demand. Since our
petroleum is depleting, Malaysia should embrace the idea of using  alternative energy in the future.

       The government should make
most developed countries that focus on green and clean energy as examples to be
followed to improve our current energy production and encourage exploration of
more renewable energy.  To do so, the government
should provide incentives to encourage research and development (R&D)  of renewable energy.

 

5.4 Limitation of the Study

 

            The limitation of this study is that it only
focuses on the relationship between electricity consumption and economic growth
based on the aggregated level. Therefore, future analysis can be done at the
disaggregated level with addition of sectorial level by incorporating the
service sector, construction sector, agriculture sector, manufacturing sector
as well as the mining and quarrying sector.      

    In addition, because of
the time constraint, this study was only able to make 44 observations, since
the data accessible was only from 1971 to 2014. The 2015 data could not be included
because of the unavailability of the data.     

 AK1Plagiarism ni

This section concludes the study. It summarizes the main conclusions
obtained from the study as well as their policy implications. It further
provides recommendations based on the findings of the study.AK1 

5.1 Summary of the Finding

 

         This study used only
2 methods to examine unit root test. It utilizes the Augmented Dickey-Fuller
(ADF) and Phillips-Perron (PP) unit root tests. The result revealed that all the
variables are integrated of order zero, I(0) and integrated of order one, I(1)
and there is no I(2) variable in the models. This study has examined the
relationship between economic growth and electricity consumption by using ARDL
bounds test.

         By using ARDL bounds
test, this study found that long run cointegration relationship exists between
dependent variable and independent variables in the model. For long run
estimation, this study found that the LEC and LFDI are positively related to
economic growth and both are statistically significant. But for LK, there is a positive
relation but its statistically insignificant value indicates that there is no  long run relationship between economic growth.

       This study also found
that there is a short run effect for the model. The error correction term (ECTt-1)
appears to be negative and significant in the ARDL estimates. The coefficient
of the short run indicates that the speed of adjustment back to the long run equilibrium
value are statistically significant.

       The diagnostic tests found that the model is free from any problem from
the normality of the residual, serial correlation, heteroscedasticity and
functional form misspecification. The stability of CUSUM and CUSUM Squares that
are within the critical region indicates that the model is stable.

      The
pairwise Granger causality found that there is a unidirectional causality
running from GDP to electricity consumption. Apart from that, this study also found
that electricity Granger cause FDI. 

5.2 Conclusion

 

This study found that there is a cointegration relationship between
endogenous variable with exogenous variables. Furthermore, from the result, it
can be concluded that electricity consumption and foreign direct investment have
significant impact on the economic growth in Malaysia in the long run and short
run except for capital.

For causality relationship between electricity consumption, foreign
direct investment and economic growth, we can see that there is causality
running from electricity consumption to economic growth. Thus, it indicates that Malaysia is growth hypothesis.

5.3 Policy Implication and
Recommendation

 

      Policy implication and
recommendation can be made through the result obtained from the study. The
result gives invaluable information to 
policymakers and the government. The overall impact of electricity
consumption and economic growth is positive. The change in energy policy will
give impact on the economic output. In Malaysia, our main sources of electricity
generation is liquid fuel and coal to fulfil the energy demand. Since our
petroleum is depleting, Malaysia should embrace the idea of using  alternative energy in the future.

       The government should make
most developed countries that focus on green and clean energy as examples to be
followed to improve our current energy production and encourage exploration of
more renewable energy.  To do so, the government
should provide incentives to encourage research and development (R&D)  of renewable energy.

 

5.4 Limitation of the Study

 

            The limitation of this study is that it only
focuses on the relationship between electricity consumption and economic growth
based on the aggregated level. Therefore, future analysis can be done at the
disaggregated level with addition of sectorial level by incorporating the
service sector, construction sector, agriculture sector, manufacturing sector
as well as the mining and quarrying sector.      

    In addition, because of
the time constraint, this study was only able to make 44 observations, since
the data accessible was only from 1971 to 2014. The 2015 data could not be included
because of the unavailability of the data.     

 AK1Plagiarism ni

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