Energy Consumption and Economic Growth: Evidence from COMESA Countries
AbstractThis 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 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; our results provide strong evidence 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 and find a long-run bidirectional relationship between GDP and energy consumption. Further, our analyses reveal that causation runs from energy consumption to GDP for low income COMESA countries.
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Bibliographic InfoPaper provided by Regional Research Institute, West Virginia University in its series Working Papers with number 201001.
Length: 20 pages
Date of creation: 2010
Date of revision:
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Web page: http://rri.wvu.edu/research/working-papers/
More information through EDIRC
energy consumption; GDP; panel causality tests; COMESA;
Find related papers by JEL classification:
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
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