THE RELATIONSHIP BETWEEN ELECTRICITY CONSUMPTION AND ECONOMIC GROWTH IN THE KINGDOM OF SAUDI ARABIA: AN ARDL APPROACH

摘要

The interest in economic literature in the causal links and the direction of the relationship between economic growth and electricity consumption has been a controversial issue for policy makers and economists alike dating back to the end of the 20th century. As an input factor, energy is considered as central to the production process, as well as a driving force of economic growth in all economies. In spite of the neglect of its role in classical growth theories, electrical energy acts as a complement to other factors of production such as labor and capital, since labor and capital are not sufficient to complete the production process. In addition, electrical energy increases the productivity of labor and capital, as well as augmenting a country's competitiveness.