An Improved PVAR-GMM Model Based on Inter-Provincial Panel Data

Electricity Consumption Index (ECI) can reflect the current situation and development trend of power consumption directly. The traditional research methods of causality between economic growth and electricity consumption only consider the index of electricity consumption and the influence of time series data. The differences in the characteristics of regional electricity consumption structure were not considered before. Based on the inter-provincial ECI and Gross Domestic Product (GDP) quarterly data, this paper proposes an improved PVAR-GMM model to characterize the significant differences in the regional impact of electricity consumption on economic growth. Some experiments based on the datasets of 26 provinces have shown that the electricity consumption has a significant role in promoting the economic growth. In different regions, there are certain differences in the role of power consumption in promoting. The electricity consumption of the western provinces and cities has a greater role in promoting economic growth than the central and eastern regions.