Journal of Asset Management and Public Economy
Vol. 1 No. 1 (2022)

The Relationship between Electricity Consumption, Oil Prices, and Economic Growth in Indonesia

Prastowo Prastowo (Universitas Islam Indonesia)
Laillil Putri Damayanti (Universitas Islam Indonesia)



Article Info

Publish Date
28 Jan 2022

Abstract

This study aims to analyze the relationship between electricity consumption, oil prices and economic growth. The data used are from 1971 to 2014 using a case study of the country of Indonesia. This research model uses the Vector Error Correction Model (VECM) regression. The results show that there is a long-term balance in electricity consumption, oil prices and economic growth. However, there is no short-term relationship on electricity consumption, oil prices and economic growth. Therefore, it is recommended that the government maximize the investment sector in industrialization so that the level of electricity consumption in terms of industry increases and can increase economic growth. In addition, this policy can create job opportunities so that residents can have greater job opportunities.

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Journal Info

Abbrev

JAMPE

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

JAMPE (Journal of Asset Management and Public Economy) publishes research findings of economics both in national and international developments as well as economic theory and application in asset management and public economics, but is not limited to: International economics Monetary economics and ...