Thesis (M.Sc.) - Cairo University - Faculty of Economics and Political Science - Department of Economics

Energy is important for growth and development since the depletion of nonrenewable energy resources and economic growth are related to each other. Hence, this thesis examines the causal relationship between natural gas and economic growth in Egypt within a multivariate production model over the period 1988{u2013}2018. An auto regressive distributed lag model (ARDL), Error correction model (ECM) and Granger causality tests are employed to examine this linkage. The results of the bounds test show that there is a stable long-run relationship between natural gas consumption and economic growth. The results of the causality test, on the other hand, reveal a unidirectional causality relationship from economic growth to energy consumption in the short-run supporting the conservation hypothesis. However, the results show that there is no causal relationship between natural gas consumption and economic growth in the long run supporting the neutrality hypothesis. This may be due to the great efforts made by the government to depend on cleaner renewable sources of energy in the production process

Issued also as CD