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Energy Consumption and Economic Growth: Evidence from COMESA Countries

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  • Chali, Nondo
  • Mulugeta, Kahsai
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    Abstract

    This study applies panel data techniques to investigate the long-run relationship between energy consumption and GDP for a panel of 19 African countries (COMESA) based on annual data for the period 1980-2005. In the first step, we examine the degree of integration between GDP and energy consumption by employing three panel unit root tests and find that the variables are integrated of order one. In the second step, we investigate the long-run relationship between energy consumption and GDP. Results overwhelming show that GDP and energy consumption move together in the long-run. In the third step, we estimate the long-run relationship and test for causality using panel-based error correction models. The results indicate that long-run and short-run causality is unidirectional, running from energy consumption to GDP.

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    File URL: http://purl.umn.edu/46450
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    Bibliographic Info

    Paper provided by Southern Agricultural Economics Association in its series 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia with number 46450.

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    Date of creation: 31 Jan 2009
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    Handle: RePEc:ags:saeana:46450

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    Related research

    Keywords: Energy consumption; GDP; Panel Causality tests; International Development; Resource /Energy Economics and Policy; O13; O55;

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    1. Asafu-Adjaye, John, 1999. "The relationship between energy consumption, energy prices and economic growth: Time series evidence from Asian developing countries," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123754, Australian Agricultural and Resource Economics Society.
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