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>

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.

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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