Assessing the linkages between the electricity consumption and economic factors in a landlocked economy: Case STUDY of Lao Pdr

Abstract

© 2020 World Scientific Publishing Company. This research paper aims to investigate linkages of electricity consumption representing energy security with estimated factors - GDP, population and foreign direct investment (FDI) during 1998-2018 for Laos People Democratic Republic (Lao PDR) by using ARDLbased Bayesian inference. This study provided empirical evidence on a long-run linear relationship analysis under ARDL-based Bayesian inference, which concludes that they have performed real relationships between electricity consumption, GDP, population and FDI. In addition, in the short-run, it was found that explanatory factors have both negative and positive impacts on Laos' electricity consumption. The results confirm the hypothesis that although Lao PDR has access to domestic energy resources, only relying on one energy resource will make the energy system insecure. Thus, Lao PDR must develop substantial infrastructures and alternative renewable energies to support the campaign of Lao PDRs electricity security in the long-run.