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The Granger Causality and Co-Integration Analysis (Case of Economics Indexes in Algeria)

A. Hamlili, Z.Chikr El mezouar, M.K. Attouche

Abstract



This paper seeks to invistigate the causal relationship between energy consumption and electricity production in Bechar south Algeria over a period from 2003 to 2009. The empirical analysis starts by analysing the time series properties of the data, which is followed by examining the nature of causality among the variables. This study analyzes that, how change in real consumption effects the real prodution of Bechar south algeria and many other factors differently. The results show that both series are integrated of order one (I(1)).

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