Energy consumption and economic growth nexus: Panel co-integration and causality tests for Sub-Saharan Africa

2014 ◽  
Vol 25 (4) ◽  
pp. 93-100 ◽  
Author(s):  
Basiru Oyeniran Fatai
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Unit Root Test ◽  
Sub Saharan Africa ◽  
Test Results ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Causality Tests ◽  
Sub Saharan ◽  
Different Sources

This study reassesses the causal relationships between energy consumption and economic growth in 18 Sub-Saharan Africa  countries over the period 1980-2011. The Panel Unit Root Test results show that variables (both exogenous and endogenous) are stationary at their first difference with individual effects and individual linear trends, while the results of panel co-integration tests show that energy consumption and economic growth do have a stable long-run equilibrium relationship. There is unidirectional causality from energy consumption to economic growth in East and the Southern Africa Sub-region, which supports the growth hypothesis. As a result, the related authorities in the regions should take a special interest in different sources of energy and invest more in this sector, make suitable policies in this regard and find new alternative and cheap sources of energy. But, there is no causality between energy consumption and economic growth in Central and the West Africa Sub-region, which is in line with the neutrality hypothesis. In other words, both energy consumption and economic growth are neutral with respect to each other. Our results confirm the inconclusive nature of a causality relationship between energy consumption and economic growth.

Economic Growth, Energy Consumption and Tourism Development in Taiwan: A Granger Causality Approach

2012 ◽  
Vol 524-527 ◽  
pp. 3376-3379 ◽  
Author(s):  
Ming Liu ◽  
Sue Ling Lai ◽  
Kuo Cheng Kuo
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Causal Relationship ◽  
Tourism Development ◽  
Point Of View ◽  
Test Results ◽  
Policy Makers ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Growth Energy

This study examines the causal relationship among economic growth, energy consumption and tourism development in Taiwan over the period from 1965 to 2010. Three Principle test results emerge from this study. First, test results indicate a long-run equilibrium relationship and a bi-direction of causality between energy consumption and tourism development with one proxy, number of visitors, being more significant than the other, visitor expenditures. Second, a bi-directional causality between energy consumption and economic growth is observed. Third, test results indicate no reciprocal causal relationship between tourism development and economic growth. From an energy conservation and sustainable tourism point of view, it is suggested policy makers and industry leaders develop high value, high profit tourism products that aim on attracting more visitor expenditures rather than numbers of visitor.

Testing the Tourism-Led Growth hypothesis: The case of Malta

2009 ◽  
Vol 59 (3) ◽  
pp. 331-343 ◽  
Author(s):  
S. Katircioglu
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Relevant Literature ◽  
International Tourism ◽  
Test Results ◽  
Causality Test ◽  
Mediterranean Countries ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Causality Tests

Tourism-Led Growth (TLG) hypothesis results are inconclusive for Mediterranean countries in the relevant literature. This study contributes to the literature by employing the bounds test for co-integration and Granger causality tests to investigate level relationship and the direction of causality between international tourism and economic growth in the case of Malta. Results reveal that a long-run equilibrium relationship exists between international tourism and economic growth in the case of Malta. On the other hand, Granger causality test results suggest that both the Tourism-Led Growth and output-driven tourism hypotheses can be inferred for Malta since there is bidirectional causation between international tourism and economic growth.

scholarly journals Effect of energy and CO2 consumption on the economy in Sub-Sahara Africa

2020 ◽  
Vol 5 (1) ◽  
Author(s):  
Josiah Chukwuma Ngonadi ◽  
Sun Huaping ◽  
Joy Okere ◽  
John Uche Ngonadi
Keyword(s):  
Economic Growth ◽  
Democratic Republic Of Congo ◽  
Sub Saharan Africa ◽  
Co2 Production ◽  
Special Effects ◽  
Economy Growth ◽  
Long Run ◽  
Causality Tests ◽  
Sub Saharan

The study focused on the long-term related effect among energy consumption (EC), CO2 production and economy growth (EG) of 12 randomly selected countries in sub-Saharan Africa. We used validation and causality tests in the 2008-2018 annual record. Special effects vary from country to country, in the long term, strong consumption of energy and economy growth in many countries has been linked with an increment in air pollution. The observation of the longitudinal study showed economic growth resulting in short-term CO2 emissions in Benin, the Democratic Republic of Congo, Ghana, Nigeria and Senegal, reflecting a lack of economy. This would not be possible without affecting the environment. The effect between CO2 and EG in Gabon, Nigeria and Togo has shown that environmental policies aimed at reducing pollution can be harmful. economic growth. In addition, long-term economic and CO2 production in Nigeria has been closely linked to the long-term links to Congo and Gabon. In the long-run, greenhouse gas emissions are the result of EC, EG and CO2 emission in Benin, Ivory Coast, Nigeria, Senegal, South Africa and Togo.

scholarly journals Infrastructure Investment as a Panacea for Sustainable Economic Growth in Nigeria: A Granger Causality Tests Analysis

2019 ◽  
pp. 1-8
Author(s):  
Cyprian Clement Abur
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Job Creation ◽  
Infrastructure Investment ◽  
Test Results ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Causality Tests ◽  
Granger Causality Tests ◽  
Sustainable Economic Growth

This paper employed Granger causality tests amid infrastructure spending, economic growth, and employment in Nigeria for the period 1960-2017 using vector autoregression (VAR) model. The result showed a strong causality between infrastructure investment and economic growth in Nigeria. Findings of the study shows a strong underlying relationship between e infrastructure investment and job creation. Economic growth seems to be the key drivers of government jobs and that the private sector jobs drives growth, however, public jobs have not been able to translates into additional jobs in the economy. The bounds test results specify the presence of long-run equilibrium relationship between infrastructure investment, economic growth, job creation and output thereby providing a theoretical underpinning for the empirical results.

scholarly journals Effect of Energy Consumption on GDP Evidence from (Ten) Sub-Saharan Africa Countries

2017 ◽  
Vol 3 (5) ◽  
pp. 3 ◽  
Author(s):  
Muhammad Maimuna Yakubu ◽  
Gylych Jelilov
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Energy Consumption ◽  
Growth And Development ◽  
Sub Saharan Africa ◽  
Data Set ◽  
Economic Growth And Development ◽  
Augmented Dickey Fuller ◽  
Causality Tests ◽  
Sub Saharan

<p>There is no uncertainty that Energy plays a very important part in economic growth and development of any country and increasing access to modernized systems of energy is vital to unlocking rapid economic and social development in sub Saharan Africa. Therefore, this paper has empirically examined the causality between energy and economic growth using a consistent data set and methodology for 10 sub-Saharan Africa countries for the period 1990-2012. By applying Augmented Dickey Fuller, co-integration and causality tests the study finds causality running from GDP to energy consumption in Nigeria, in Ghana causality runs from energy consumption to GDP, for Namibia causality runs from GDP to energy consumption but not vice versa and for Cote d’ivore causality runs from gross capital formation to GDP. And no evidence of causality found in Togo, Cameroon, Botswana, Ethiopia, South Africa and Benin.</p>

scholarly journals Energy consumption and real GDP: Panel co-integration and causality tests for sub-Saharan African countries

2017 ◽  
Vol 23 (1) ◽  
pp. 8-14 ◽  
Author(s):  
Babajide Fowowe
Keyword(s):  
Energy Consumption ◽  
Causal Relationship ◽  
African Countries ◽  
Real Gdp ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Causality Tests ◽  
Sub Saharan ◽  
Long Run Equilibrium

This paper investigates the causal relationship between energy consumption and real GDP in 14 Sub-Saharan African countries over the period 1971–2004. The results of panel co-integration tests showed that energy consumption and real GDP do not have a stable long-run equilibrium relationship. We find that for all members of the panel, there is homogenous causality from energy consumption to real GDP and vice versa. This bi-directional causality supports the feedback hypothesis.

scholarly journals The Nexus between Export and Economic Growth in Tanzania

2019 ◽  
Vol 1 (2) ◽  
pp. p95
Author(s):  
Romanus L. Dimoso (PhD, Economics) ◽  
UTONGA, Dickson (MSc. Economics)
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Series Data ◽  
Test Results ◽  
Causality Test ◽  
Goods And Services ◽  
Long Run ◽  
Causality Tests ◽  
The Government ◽  
Econometrics Analysis

This study explored the causal relationship between exports and economic growth in Tanzania. It analyzed time series data for the period of 1980 to 2015. Economic growth is measured in terms of growth per cent while exports are measured in percentage change of goods and services sold abroad. Econometrics analysis was employed in the due course. Such procedures as testing for the presence of unit root, co-integration and causality were done. Furthermore, the Johansen co-integration and Granger causality tests were employed to examine the long-run relationship among variables. The results of co-integration indicate the existence of one co-integrating equation. The causality test results exhibited causality which runs from economic growth to exports. The results conclude that, in the long run, there is a relationship between exports and economic growth in Tanzania. This study recommends the Government to make efforts to improve exports and eventually, in the long-run, rejuvenating the economy.

Nutrition and economic growth in sub-Saharan Africa: a causality test using panel data

2017 ◽  
Vol 16 (2) ◽  
pp. 174-189
Author(s):  
Kolawole Ogundari ◽  
Adebayo Aromolaran
Keyword(s):  
Economic Growth ◽  
Design Methodology ◽  
Sub Saharan Africa ◽  
Dynamic Panel ◽  
Causality Test ◽  
Panel Causality ◽  
Content Type ◽  
Causality Tests ◽  
Short Run ◽  
Sub Saharan

Purpose This study aims to investigate the causal relationship between nutrition and economic growth in sub-Saharan Africa. Design/methodology/approach A dynamic panel causality test based on the Blundell-Bond’s system generalized methods-of-moment was used. To make efficient inference for the estimates, the authors check for the panel unit root and co-integration relationship amongst the variables. Findings The variables were found to be non-stationary at level, stationary after first difference and co-integrated. The results of the causality tests reveal evidence of long and short-run bidirectional causality between nutrition and economic growth, which implies that nutritional improvement is a cause and consequence of economic growth and vice versa. Originality/value This is the first study to consider causality between nutrition and economic growth in the region.

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