The Causal Relationship Between Nuclear Energy Consumption and Economic Growth in India

Abstract

This article attempts to investigate the long-run and short-run causality issues between nuclear energy consumption and economic growth in India by using the co-integration and error-correction models. It employs the annual data covering the period 1969–2006. The results indicate that there is a uni-directional causality running from nuclear energy consumption to economic growth without any feedback effect. Thus, considering the fact that nuclear energy consumption fosters economic growth, policies for increasing nuclear energy supply investment is, therefore, likely to enhance economic growth in India.

Keywords:

• causality
• economic growth
• India
• nuclear energy consumption

Notes

** represents the rejection of the null hypothesis at a 1% level of significance.

* indicates the rejection of the null hypothesis at a 10% level of significance.

** denotes the rejection of the null hypothesis at 1% levels of significance.