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Energy Consumption and Economic Growth: Evidence from COMESA Countries

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  • Chali, Nondo
  • Mulugeta, Kahsai

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.

Suggested Citation

  • Chali, Nondo & Mulugeta, Kahsai, 2009. "Energy Consumption and Economic Growth: Evidence from COMESA Countries," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46450, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saeana:46450
    DOI: 10.22004/ag.econ.46450
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    References listed on IDEAS

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    1. Asafu-Adjaye, John, 2000. "The relationship between energy consumption, energy prices and economic growth: time series evidence from Asian developing countries," Energy Economics, Elsevier, vol. 22(6), pages 615-625, December.
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    Cited by:

    1. Espoir, Delphin Kamanda & Sunge, Regret & Bannor, Frank, 2021. "Economic growth, renewable and nonrenewable electricity consumption: A fresh evidence from a panel sample of African countries," EconStor Preprints 238063, ZBW - Leibniz Information Centre for Economics.
    2. Afees A. Salisu & Tirimisyu F. Oloko & Ismail Okunoye & Olaide Opeloyeru & Nafisat Olabisi, 2018. "Energy consumption and economic growth in oil importing and oil exporting countries: A Panel ARDL approach," Working Papers 048, Centre for Econometric and Allied Research, University of Ibadan.

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    Keywords

    International Development; Resource /Energy Economics and Policy;

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