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On the relationship between energy consumption, productivity and economic growth: Evidence from Algeria, Ghana, Nigeria and South Africa

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  • Ackah, Ishmael

Abstract

It has been suggested that Africa’s growth is principally driven by natural resource rents. This is at variance with the growth in countries such as Korea and Taiwan where productivity has been identified as the main driver. In this study, the effect of energy consumption, investment, productivity on per capita growth in oil producing African countries is examined by employing a dynamic simultaneous panel data model. The simultaneous panel data model is able to examine the three-way causal relationship between energy consumption, productivity and economic growth. The results confirm the importance of income, productivity, price and investment influence the demand for renewable end non-renewable energy. The study recommends that there should be investment in productivity to enhance economic growth and minimize energy consumption.

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  • Ackah, Ishmael, 2015. "On the relationship between energy consumption, productivity and economic growth: Evidence from Algeria, Ghana, Nigeria and South Africa," MPRA Paper 64887, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:64887
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    Cited by:

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    2. Bah, Muhammad Maladoh & Azam, Muhammad, 2017. "Investigating the relationship between electricity consumption and economic growth: Evidence from South Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 531-537.

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    More about this item

    Keywords

    Total Factor Productivity; Renewable Energy Consumption; Non-Renewable Energy Consumption; Economic Growth;
    All these keywords.

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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