A Study of the Relationship between Electricity Consumption and GDP Growth in Hainan International Tourism Island of China

Abstract

By making use of the stationary test, co-integration test, Granger Causality and Error Correction Model(ECM), we research the relationship between the electric power consumption of the whole society and GDP growth in Hainan Island from 1988 to 2009. In particular, we study the relationship between that of three major industries and the GDP growth, namely, the primary industry, the secondary industry and the tertiary industry and the GDP growth in Hainan Island from 1990 to 2009. Moreover with the assistance of Eviews 6.0 and Spss 17.0, we respectively establish the long-term equilibrium models and ECMs for them, further explain the established models, obtain some interesting results.