Impact of electricity subsidies on economic growth in energy-exporting countries: analysis with panel data

Abstract EN

This study attempted to measure the impact of electricity subsidy on economic growth using panel data from 2010 to 2019 of a sample of 11 energy-exporting countries.

the sample was selected based on data availability during the study period.

six independent variables were used in addition to the annual growth rate of GDP as a dependent variable.

based on the model's estimation findings, the study found that the electricity subsidy variable had a negative and significant relationship to economic growth.

this result also raises several questions about the viability of this policy in many states.

although the subsidy aims to protect consumers, it exacerbates public finance imbalances and crowds out fields of social expenditure such as education and health.