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ID115170
Title ProperEnergy use for economic growth
Other Title Informationa trivariate analysis from Tunisian agriculture sector
LanguageENG
AuthorSebri, Maamar ;  Abid, Mehdi
Publication2012.
Summary / Abstract (Note)Following the importance of energy in the agrarian economies, the investigation of the causal relationship between energy consumption in agriculture sector and economic growth has a fundamental role in implementing suitable policies. This paper examines the causal relationship between energy consumption and agricultural value added, controlling for trade openness, in Tunisia from 1980 to 2007. The relationship is investigated at aggregated as well as disaggregated components of energy consumption, including oil and electricity. Using Granger's technique, it is shown that various results are obtained regarding the direction of causality between competing variables. Nevertheless, the most common finding suggest that trade openness and both aggregated and disaggregated energy consumption Granger causes agricultural value added. Therefore, the energy-led growth and trade-led growth hypotheses are supported in the Tunisian agriculture sector. An important policy implication resulting from this study is that energy can be considered as a limiting factor to agriculture value added and, therefore, shocks to energy supply would have a negative impact onto agriculture performance. Furthermore, trade liberalization seems to be a stimulus factor to the Tunisian agriculture development.
`In' analytical NoteEnergy Policy Vol. 48; Sep 2012: p.711-716
Journal SourceEnergy Policy Vol. 48; Sep 2012: p.711-716
Key WordsAgricultural Energy Consumption ;  Causality ;  Economic Growth