scholarly journals Electricity Consumption and Economic Growth in Nigeria: A Sectoral Analysis

2019 ◽  
Vol 5 (1) ◽  
pp. 45 ◽  
Author(s):  
Akomolafe Kehinde John
Keyword(s):  
Economic Growth ◽  
Service Sector ◽  
Manufacturing Sector ◽  
Electricity Consumption ◽  
Vector Error Correction ◽  
Agriculture Sector ◽  
Long Run ◽  
Sectorial Analysis ◽  
Short Run ◽  
Electricity Conservation

This paper examines the causality between electricity consumption and economic growth in Nigeria, with a focus on sectorial analysis. The sectors considered are manufacturing sector, agriculture sector, and the service sector. The study covers the periods from 1981 to 2014. The study was done in a vector error correction model (VECM). The results show that the causality run from  manufacturing sector to electricity consumption in long run, but a bidirectional causality in the short run, from electricity consumption to service sector output  in the long run, and  from electricity consumption to service sector output in long run. There is no short run causality between electricity consumption and service sector and agricultural sectors outputs. The paper concludes with the recommendation that government should be careful in implementing electricity conservation policy

Electricity consumption and economic growth in ASEAN

2017 ◽  
Vol 5 (2) ◽  
pp. 16
Author(s):  
Ahmad Ghazali Ismail ◽  
Arlinah Abd Rashid ◽  
Azlina Hanif
Keyword(s):  
Economic Growth ◽  
Energy Use ◽  
Electricity Consumption ◽  
Panel Estimation ◽  
Real Gdp ◽  
Long Run ◽  
Bidirectional Relationship ◽  
Short Run ◽  
Using Data ◽  
The Relationship

The relationship and causality direction between electricity consumption and economic growth is an important issue in the fields of energy economics and policies towards energy use. Extensive literatures has discussed the issue, but the array of findings provides anything but consensus on either the existence of relations or direction of causality between the variables. This study extends research in this area by studying the long-run and causal relations between economic growth, electricity consumption, labour and capital based on the neo-classical one sector aggregate production technology mode using data of electricity consumption and real GDP for ASEAN from the year 1983 to 2012. The analysis is conducted using advanced panel estimation approaches and found no causality in the short run while in the long-run, the results indicate that there are bidirectional relationship among variables. This study provides supplementary evidences of relationship between electricity consumption and economic growth in ASEAN.

Enhancing Economic Growth and Government Revenue Generation in Nigeria: The Role of Diaspora Remittances

2021 ◽  
pp. 003464462110256
Author(s):  
Dal Didia ◽  
Suleiman Tahir
Keyword(s):  
Economic Growth ◽  
Parameter Estimates ◽  
Gross Domestic Product Growth ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
The Empirical Analysis

Even though remittances constitute the second-largest source of foreign exchange for Nigeria, with a $24 billion inflow in 2018, its impact on economic growth remains unclear. This study, therefore, examined the short-run and long-run impact of remittances on the economic growth of Nigeria using the vector error correction model. Utilizing World Bank data covering 1990–2018, the empirical analysis revealed that remittances hurt economic growth in the short run while having no impact on economic growth in the long run. Our parameter estimates indicate that a 1% increase in remittances would result in a 0.9% decrease in the gross domestic product growth rate in the short run. One policy implication of this study is that Nigeria needs to devise policies and interventions that minimize the emigration of skilled professionals rather than depending on remittances that do not offset the losses to the economy due to brain drain.

scholarly journals Cointegration and Causality Analysis of Dynamic Linkage between Industrial Energy Consumption and Economic Growth in Pakistan

2019 ◽  
Vol 11 (17) ◽  
pp. 4546 ◽  
Author(s):  
Chandio ◽  
Rauf ◽  
Jiang ◽  
Ozturk ◽  
Ahmad
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Electricity Consumption ◽  
Industrial Sector ◽  
Oil Consumption ◽  
Industrial Oil ◽  
Long Run ◽  
Industrial Energy ◽  
Short Run ◽  
Gas Consumption

Energy consumption is a crucial factor to promote industrial sector contribution in an economy for its economic progression. Indeed, Pakistan is an emerging country, but recently adjoining with a very severe deficit of electricity sources. Hence, the industry value added growth leading to economic progression is also fronting inevitable challenges to promote the industry growth. The main objective of the study is to investigate the linkages between industrial sector oil, gas and electricity consumption, and renewable energy consumption with economic development in Pakistan. The findings display evidence of cointegration and a long-run relationship between the consumption of industrial energy and economic growth in Pakistan. The results showed that industrial electricity consumption and industrial gas consumption have a positive and statistically significant impact on economic growth both in the long run and the short run in Pakistan. Industrial oil consumption negatively impacts economic growth in the long run, but positively and statistically significantly impacts economic growth in the short run in Pakistan. Moreover, indications through the vector error correction model (VECM) model confirmed bi-directional relationships of industrial sector oil consumption and economic growth in Pakistan. Furthermore, the uni-directional nexus instituted between economic growth to industrial electricity consumption, industrial gas consumption to industrial electricity consumption, and industrial oil consumption to industrial electricity consumption. The findings uncovered solid interconnections among the studied variables and suggested that the Pakistani government should build a robust policy to diminish the oil, gas, and fossil fuels consumption for electricity production, as a replacement to depend on solar, hydro, wind, and biomass energy sources in Pakistan. Consequently, the government should promote more gas concentrated projects, as these will alleviate the contests of gas dearth and provide it to the industry at cheap prices with ease.

scholarly journals Dynamic Relation Between Economic Growth, Stock Market Depth and Macroeconomic Variables of Bangladesh

2020 ◽  
Vol 13 (26) ◽  
pp. 45-63
Author(s):  
Mostafa ALI ◽  
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Causal Relation ◽  
Equilibrium Path ◽  
Vector Error Correction ◽  
Market Depth ◽  
Dynamic Relation ◽  
Long Run ◽  
Macroeconomic Indicators ◽  
Short Run

This study explores the dynamic relation between economic growth and stock market depth in the presence of three more macroeconomic indicators such as exchange rate, inflation and interest rate of Bangladesh. We use Johansen and Juselius (1990) test of co-integration and Vector Error Correction Model (VECM) to detect the possible short-run and long-run causal relation among the selected economic forces. The results of the study evidence that the lagged error-correct term of GDP (i.e., the proxy of economic growth) is found statistically significant in all three models. This manifest that GDP tends to converge to its long-run equilibrium path in response to changes in its regressors. But we find a complex network of causal linkage between the variables in the short-run. The findings of this study are of particular interest and importance to policymakers, financial managers, financial analysts and investors dealing with the Bangladesh economy and the Bangladesh stock market.

scholarly journals The Combined Effects of Public and Private Investments on Economic Growth in the CEMAC Zone

2019 ◽  
Vol 3 (1) ◽  
Author(s):  
Noula Armand Gilbert ◽  
Chouafi Nguekam Orfé ◽  
Kamajou François
Keyword(s):  
Economic Growth ◽  
Sustainable Growth ◽  
Public And Private ◽  
Vector Error Correction ◽  
Panel Data Estimation ◽  
Public Investments ◽  
Long Run ◽  
Private Investments ◽  
Short Run ◽  
The Impact

This study evaluates the simultaneous impact of public and private investments on economic growth in the CEMAC zone between 1984 and 2017.To attain this aim, we use the Vector Error Correction Model (VECM) to test the direction of causality between the three variables above at the level of each country. We find that the direction of causality is not the same in all the countries both in the short as in long-run. We then develop an ideal model going from the Cobb Douglas production function which we quantitatively validate using panel data estimation through the method of Pool Mean Group which takes into account individual specificities. It arises that contrary to economic theory, private sector investments have positive and significant effects in short-run. However, the impact of public investments is negative and significant. In the long-run, the effects are reversed and call on the authorities of the CEMAC zone to reinforce the political risk to strengthen the public-private partnership in the process of sustainable growth.

scholarly journals Electricity Consumption, Corruption and Economic Growth

2018 ◽  
Vol 6 (4) ◽  
pp. 193-214
Author(s):  
Busrat Abidemi Agbaje ◽  
Ekele Idachaba
Keyword(s):  
Economic Growth ◽  
Causal Relationship ◽  
Electricity Consumption ◽  
Electricity Price ◽  
African Countries ◽  
Causality Test ◽  
Long Run ◽  
Integration Techniques ◽  
Short Run ◽  
Electricity Infrastructure

An important prerequisite for reducing poverty, sustainable development and achievement of the millennium development goal has to some extent been tied to access to electricity. However, the subject matter; 'electricity consumption causing economic growth' has seen conflicting results from the theoretical and empirical front, if indeed a relationship exist at all. The study tests, within a panel context the long-run relationship between electricity consumption and economic growth for 13 African Countries from 2006 to 2017 by employing recently developed panel co-integration techniques. Implementing a three stage approach made up of panel unit root, panel co-integration and Granger causality test to examine the causal relationship between electricity consumption, electricity price, corruption, employment and growth. The study provides empirical evidence that a bidirectional causal relationship between electricity consumption and economic growth exist in the short run, suggesting that lack of electricity could hamper economic growth as well as an investment in electricity infrastructure would in turn improve economic growth. Also reveals that corruption causes the level of electricity consumption and GDP in the short run. On the long-run front electricity consumption and electricity price granger causes GDP and GDP causes electricity consumption.

scholarly journals Financial Development and Economic Growth in Developing Countries

2018 ◽  
Vol 1 (2) ◽  
pp. p94
Author(s):  
Kando Serge Gbagbeu
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Cote D'ivoire ◽  
Côte D’Ivoire ◽  
Cote D’Ivoire ◽  
Vector Error Correction ◽  
Distributed Lag ◽  
Côte D'ivoire ◽  
Long Run ◽  
Short Run

In this study, we concern mainly about the short and long-run relationship between economic growth and financial development. We use a multi-steps methodology, namely the Autoregressive Distributed Lag (ARDL) approach and the Vector Error Correction Model (VECM) approach to test this relationship in Côte d’Ivoire from 1980 to 2014. Following our results, we conclude that there is a unidirectional causal relationship, both long run and short run, between GDP per capita and financial development index in Côte d’Ivoire running from economic growth to financial development.

scholarly journals The Differential Effects of Foreign Investments on Sectoral Growth

CONVERTER ◽  
2021 ◽  
pp. 674-688
Author(s):  
Cheng Hui Fang, Agbanyo George Kwame
Keyword(s):  
Economic Growth ◽  
Foreign Investment ◽  
Service Sector ◽  
Manufacturing Sector ◽  
Generalized Method Of Moments ◽  
Economic Sectors ◽  
Differential Effects ◽  
Agriculture Sector ◽  
Sectoral Growth ◽  
The Impact

Previous studies on the effect of FDI on sectoral growth are far from reaching a consensus. This paper, using a panel data of 35 countries between 1990-2019, aims at investigating the differential effects of foreign direct investment modes of entry into the economic sectors. Through the systems generalized method of moments methodology, this study found that the impact of foreign investment on growth corresponds directly with the absorptive capacity of the host country. Meanwhile,M&A is a better economic booster than greenfield investment. The results also suggest that foreign investment is a significant agent of economic growth in the service sector, relatively weak in the manufacturing sector and insignificant in the agriculture sector. Also, M&A seems to spillover more easily than greenfield across sectors, and natural resources are not very good channels to transmit foreign investment into economic growth.

scholarly journals Impact of banking institutions on national economy an empirical study of time series analysis in Pakistan

2015 ◽  
Vol 4 (4) ◽  
pp. 327-333
Author(s):  
Nouman Badar ◽  
Munib Badar
Keyword(s):  
Economic Growth ◽  
Financial Sector ◽  
Study Data ◽  
Short Term ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
Banking Institutions ◽  
Relationship Of

This paper examines the long and short term relationship of financial sector development on economic growth of Pakistan where development of financial sector is detected by the variables truly depicts the efficiency of financial sector i.e. Money Supply, size of Advances, Private sector Credit growth and Bank’s equity with economic growth which is pronounced by Gross Domestic Product in this study. Data of almost 22 years ranges from 1992 to 2013 of overall banking industry is taken to obtain results by employing Johnson and Jusellious co integration technique to detect long run association while Granger Casualty test is used to determine cause and effect relationship and to measure short term dynamics Vector Error correction model is used. The result shows that both long and short run relationship exists between growth of financial sector and economy of Pakistan.

Electricity Consumption–Economic Growth Nexus: Evidence from ARDL Bound Testing Approach in the Tunisian Context

2020 ◽  
pp. 097215092092543 ◽  
Author(s):  
Zouheir Mighri ◽  
Hanen Ragoubi
Keyword(s):  
Economic Growth ◽  
Electricity Consumption ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Causality Tests ◽  
Short Run ◽  
Testing Approach ◽  
Causal Nexus

This article investigates the causal nexus between electricity consumption and economic growth in Tunisia for the period 1971–2013 by using autoregressive distributed lag (ARDL) bounds testing approach of cointegration and Granger causality tests. The empirical findings indicate the existence of a long-term relationship between electricity consumption and economic growth. Besides, they support the conservation hypothesis in the long run, while they confirm the growth hypothesis in the short run.

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