Evaluating the Impacts of Urban and Rural Electricity Use on GDP in Three South Asian Countries: Bangladesh, India, and Nepal

Abstract

This study utilizes panel data to evaluate the impacts of urban and rural electricity use on GDP in three South Asian countries: Bangladesh, India, and Nepal. The World Bank Development Indicators data is utilized for the study, which spans the years 1997 to 2020. It uses statistical analysis to interpret the data, using EViews 10 software. This study undertakes a panel unit root test and panel cointegration analysis to investigate the long-run relationship among variables. The results of the study showed that there is a significant positive relationship among urban electricity use, rural electricity use, and GDP growth. Furthermore, panel impulse response functions (IRFs) are used to investigate the short- and long-term relationships as well as the impact of responses among GDP and both urban and rural electricity use. This study also shows that electricity use in urban and rural areas in the countries of Bangladesh, India, and Nepal has a positive impact on economic growth.