Energizing Tunisia's Path to Prosperity: Unveiling the Intricate Link between Energy Consumption and Economic Growth

Abstract

The crucial link between energy and economic growth has long been debated, with scholars trying to understand the impact of one on the other. In this groundbreaking study, we delve into the interplay between energy consumption and economic growth in Tunisia from 1971 to 2021. Rather than relying on conventional methodologies, we employ the advanced autoregressive distributed lag (ARDL) bounds testing approach, shedding new light on the relationship. Our findings reveal a stable long-term connection between energy consumption and economic growth, suggesting that as the economy flourishes, energy consumption also rises. This study not only contributes to the understanding of Tunisia's energy dynamics but also offers valuable insights into the determinants of energy consumption in the region.