The Impact of Electricity Supply on Economic Growth in Sri Lanka

R. Morimoto and C. Hope (UK)


Economic growth, Electricity, GDP, Sri Lanka


Yang [1] finds that there is a bi-directional causal relationship between gross domestic product and electricity consumption in Taiwan for the period 1954 – 1997. This study applies Yang’s model to examine the impact of electricity supply on economic growth in Sri Lanka. Morimoto and Hope [2] finds that the expected increase in economic output due to increased electricity supply plays a crucial role in their cost benefit analysis model which assesses the economic, social and environmental impacts of dam projects in Sri Lanka. This study shows that the application of Yang’s regression analysis is one possible approach to estimate a better range for the parameter EO.

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