Energy prices and economic performance in South Africa: an ARDL bounds testing approach

This paper empirically investigates the causal relationship between energy prices and economic performance in South Africa by employing auto-regressive distributed lag (ARDL) bounds test technique for period 1994 to 2019. The empirical evidence that was reviewed used a different methodology covered periods, particularly African context. While previous studies investigated examining oil or electricity separately, this study combined these regression model. ARDL model is capable of detecting hidden cointegration relationships works even series are integrated orders. established long-run variables. findings revealed have significant negative impact on growth long short run, while crude show positive linkage with run. Granger causality analysis did not establish Africa. However, it pointed unidirectional from both labour productivity gross fixed capital formation growth. It thus recommended government should take steps mitigate effects high