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The Effect of Gasoline Price on Economic Sectors in Nigeria

Author

Listed:
  • Philip Ifeakachukwu Nwosa

    (Bells University of Technology,Ota, Ogun State. Nigeria)

  • Akinyemi Alao Ajibola

    (Bells University of Technology,Ota, Ogun State. Nigeria)

Abstract

This paper examined the long-run and short-run relationship between gasoline price and sectoral output in Nigeria for the period from 1980 to 2010. Six sectors (agriculture; manufacturing; building and construction; wholesale and retail; transportation and communication) of the economy were examined. The long run regression estimate showed that gasoline price is a significant determinant output in all sectors examined with exception to the building and construction sector while the short run error correction estimate revealed that only output of the agriculture and the manufacturing sectors of the Nigerian economy is affect by gasoline price increase in the short run. The study recommended among others the need for the government to ensure adequate power supply in order to reduce the over reliance of economics sectors on gasoline as a prime source of power.

Suggested Citation

  • Philip Ifeakachukwu Nwosa & Akinyemi Alao Ajibola, 2013. "The Effect of Gasoline Price on Economic Sectors in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 3(1), pages 99-110.
    • Handle: RePEc:eco:journ2:2013-01-10
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    References listed on IDEAS

    as
    1. Ghali, Khalifa H. & El-Sakka, M. I. T., 2004. "Energy use and output growth in Canada: a multivariate cointegration analysis," Energy Economics, Elsevier, vol. 26(2), pages 225-238, March.
    2. Kilian, Lutz & Edelstein, Paul, 2007. "Retail Energy Prices and Consumer Expenditures," CEPR Discussion Papers 6255, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Aliyu Barde Abdullahi, 2014. "Modeling Petroleum Product Demand in Nigeria Using Structural Time Series Model (STSM) Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 4(3), pages 427-441.
    2. Tehreem Fatima & Enjun Xia & Muhammad Ahad, 2019. "Oil demand forecasting for China: a fresh evidence from structural time series analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(3), pages 1205-1224, June.
    3. John Sorde & Chijioke Nwaozuzu & Alwell Nteegah, 2023. "Sectoral Gas Demand and Sustainable Economic Development in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(10), pages 758-772, October.

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    More about this item

    Keywords

    Gasoline Price; Sectoral Output; Error-Correction Method; Nigeria;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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