Received: March 16, 2018; Revised: July 4, 2018; Accepted: October 9, 2018 1 International Islamic University Malaysia. Po Box 10, 50728, Kuala Lumpur, Malaysia 2 Sunway University. 5, Jalan Universiti, Bandar Sunway, 47500 Petaling Jaya, Selangor, Malaysia 3 King Saud University. Po Box 14511, Saudi Arabia 4 Universiti Sains Malaysia. 11800, USM Penang, Malaysia E-mail: 1 asmy@iium.edu.my, 2 hans5587@hotmail.com, 3 fouad_econsu@yahoo.com, 4 anwarap@usm.my DOI: htttp://dx.doi.org/10.15408/etk.v18i1.7455 Etikonomi Volume 18 (1), 2019: 1 - 12 P-ISSN: 1412-8969; E-ISSN: 2461-0771 Electricity Consumption and Economic Growth: A Revisit Study of Their Causality in Malaysia Mohamed Asmy Mohd Thas Thaker 1 , Hassanudin Mohd Thas Thaker 2 , Md. Fouad Amin 3 , Anwar Allah Pitchay 4 Abstract. Te role of electricity towards the economy becomes crucial in many countries including in Malaysia. It becomes necessary to investigate whether electricity consumption contributes to economic growth in order to make appropriate energy policies. Te purpose of this research is to examine the long run and causal relationships between electric power consumption and real GDP. Tis paper applies to the error-correction model. Te results indicate that electricity consumption has a positive impact on economic growth. Besides that, there was unidirectional Granger causality running from electricity consumption to real GDP but not vice versa. Tis paper suggests that Malaysia is becoming an energy-dependent country. Te government should emphasize on formulating energy strategies so as to avoid adverse efects on economic growth. Keywords: electricity consumption, economic growth, granger causality JEL Classifcation: C39, D19, O40 Abstrak. Peran listrik terhadap ekonomi menjadi sangat penting di banyak negara termasuk di Malaysia. Menjadi perlu untuk menyelidiki apakah konsumsi listrik berkontribusi pada pertumbuhan ekonomi untuk membuat kebijakan energi yang tepat. Tujuan dari penelitian ini adalah untuk menguji hubungan jangka panjang dan kausal antara konsumsi daya listrik dan PDB riil. Penelitian ini menerapkan model koreksi kesalahan (ECM). Hasil menunjukkan bahwa konsumsi listrik memiliki dampak positif pada pertumbuhan ekonomi. Selain itu, ada kausalitas Granger searah yang berjalan dari konsumsi listrik ke PDB riil tetapi tidak sebaliknya. Makalah ini menunjukkan bahwa Malaysia menjadi negara yang bergantung pada energi. Pemerintah harus menekankan pada merumuskan strategi energi untuk menghindari dampak buruk pada pertumbuhan ekonomi. Kata Kunci: konsumsi daya listrik, pertumbuhan ekonomi, kausalitas granger How to Cite: Thaker, M. A. M. T., Thaker, H. M. T., Amin, M. F., & Pitchay, A. A. (2019). Electricity Consumption and Economic Growth: A Revisit Study of Their Causality in Malaysia. Etikonomi: Jurnal Ekonomi. Vol. 18 (1): 1 – 12. doi: http// dx.doi.org/10.15408/etk.v18i1.7455.