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Energy consumption and economic growth: Evidence from Cameroon

  • Fondja Wandji, Yris D.
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    The aim of this paper is to study the nature of the relationship between energy consumption and economic growth in Cameroon through a three-step approach: (i) Study the stationarity of the chronic, (ii) test of causality between variables and (iii) estimate the appropriate model. The study concludes in a non-stationarity of the series. Using the data in first difference, the Granger causality test yields a strong evidence for unidirectional causality running from OIL to GDP. Cointegration tests also show that these two series are co-integrated and the Error Correction Model (ECM) reveals that every percentage increase in Oil products consumption increases economic growth by around 1.1%. This result confirms the intuition that an economic policy aimed at improving energy supply will necessarily have a positive impact on economic growth. On the other side, a lack of energy is a major bottleneck for further economic development in Cameroon.

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    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 61 (2013)
    Issue (Month): C ()
    Pages: 1295-1304

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    Handle: RePEc:eee:enepol:v:61:y:2013:i:c:p:1295-1304
    Contact details of provider: Web page: http://www.elsevier.com/locate/enpol

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