Remittances and Energy Consumption: Evidence from Morocco

Abstract

The main purpose of this study is to empirically investigate the co‐integration and causal relationship between international remittances and energy consumption in the context of Morocco. Previous empirical studies associated remittances with various macroeconomic and social variables. To our knowledge, this is the first study that examines the causality between remittances and energy consumption in Morocco. The study finds a long‐run equilibrium relationship between remittances and energy consumption. The results indicate that remittances influence energy consumption directly both in the short run and long run, and influence energy consumption indirectly through industrialization and economic growth in the long run.