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Electricity Consumption and Manufacturing Sector Productivity in Nigeria: An Autoregressive Distributed Lag-bounds Testing Approach

Author

Listed:
  • Ismail Aliyu Danmaraya

    (Department of Economics, Northwest University, Kano, Nigeria)

  • Sallahuddin Hassan

    (School of Economics, Finance and Banking, Universiti Utara Malaysia, Kedah, Malaysia)

Abstract

This paper employs the autoregressive distributed lag technique to provide evidence of long run and short run relationship, as well as the causality between manufacturing productivity and electricity consumption in Nigeria for the period 1980-2013. When electricity consumption, capital formation and manufacturing productivity are applied as the dependent variable(s), the bounds test provides a proof of cointegration among electricity consumption, manufacturing productivity, and capital. Similarly, the findings demonstrated bidirectional causality between manufacturing productivity and energy consumption. Nigeria is along this line an electricity reliant nation. It is likewise a nation in which electricity consumption is rising with the manufacturing productivity. This demonstrates that electricity is a powerful determinant of manufacturing performance in Nigeria; accordingly, policy on energy should guarantee that electricity creates less negative effects on manufacturing productivity.

Suggested Citation

  • Ismail Aliyu Danmaraya & Sallahuddin Hassan, 2016. "Electricity Consumption and Manufacturing Sector Productivity in Nigeria: An Autoregressive Distributed Lag-bounds Testing Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 6(2), pages 195-201.
    • Handle: RePEc:eco:journ2:2016-02-6
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    References listed on IDEAS

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    Cited by:

    1. Franklin Famous Asemota & Felicia Omowunmi Olokoyo, 2022. "Renewable Energy Financing and Sustainable Industrial Development in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 563-567, July.
    2. Sallahuddin Hassan & Ismail Aliyu Danmaraya & Muhammad Rabiu Danlami, 2018. "Energy Consumption and Manufacturing Performance in Sub-Saharan Africa: Does Income Group Matters?," International Journal of Energy Economics and Policy, Econjournals, vol. 8(1), pages 175-180.
    3. Khobai, Hlalefang, 2017. "Electricity consumption and Economic growth: A panel data approach to Brics countries," MPRA Paper 82460, University Library of Munich, Germany.
    4. Yselle F. Malah Kuete & Simplice A. Asongu, 2023. "Infrastructure Development as a Prerequisite for Structural Change in Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1386-1412, June.
    5. Tiwari, Aviral Kumar & Eapen, Leena Mary & Nair, Sthanu R, 2021. "Electricity consumption and economic growth at the state and sectoral level in India: Evidence using heterogeneous panel data methods," Energy Economics, Elsevier, vol. 94(C).
    6. Lawrence U. Okoye & Alexander E. Omankhanlen & Johnson I. Okoh & Ngozi B. Adeleye & Felix N. Ezeji & Gideon K. Ezu & Benjamin I. Ehikioya, 2021. "Analyzing the Energy Consumption and Economic Growth Nexus in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 378-387.
    7. Mengkun Liang & Renjing Guo & Hongyu Li & Jiaqi Wu & Xiangdong Sun, 2023. "T-LGBKS: An Interpretable Machine Learning Framework for Electricity Consumption Forecasting," Energies, MDPI, vol. 16(11), pages 1-27, May.
    8. Kassim, Fatima & Isik, Abdurrahman, 2020. "Impact of Energy Consumption on Industrial Growth in a Transition Economy: Evidence from Nigeria," MPRA Paper 101757, University Library of Munich, Germany.
    9. Hlalefang Khobai, 2018. "Electricity Consumption and Economic Growth: A Panel Data Approach for Brazil, Russia, India, China and South Africa Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 8(3), pages 283-289.
    10. Lawrence U. Okoye & Alexander E. Omankhanlen & Johnson I. Okoh & Uchechukwu E. Okorie & Felix N. Ezeji & Benjamin I. Ehikioya & Gideon K. Ezu, 2021. "Effect of Energy Utilization and Financial Development on Economic Growth in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 392-401.

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    More about this item

    Keywords

    Electricity Consumption; Manufacturing Productivity; Autoregressive Distributed Lag; Nigeria;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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