Energy Consumption and Economic Growth Revisited in African Countries

30 Pages Posted: 28 Sep 2011

See all articles by Jude Comlanvi Eggoh

Jude Comlanvi Eggoh

affiliation not provided to SSRN

Chrysost Bangaké

University of Orleans

Christophe Rault

IZA Institute of Labor Economics; University of Orleans; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: September 27, 2011

Abstract

The aim of this paper is to provide new empirical evidence on the relationship between energy consumption and economic growth for 21 African countries over the period from 1970 to 2006, using recently developed panel cointegration and causality tests. The countries are divided into two groups: net energy importers and net energy exporters. It is found that there exists a long-run equilibrium relationship between energy consumption, real GDP, prices, labor and capital for each group of countries as well as for the whole set of countries. This result is robust to possible cross-country dependence and still holds when allowing for multiple endogenous structural breaks, which can differ among countries. Furthermore, we find that decreasing energy consumption decreases growth and vice versa, and that increasing energy consumption increases growth, and vice versa, and that this applies for both energy exporters and importers. Finally, there is a marked difference in the cointegration relationship when country groups are considered.

Keywords: Africa, energy consumption, economic growth, panel cointegration, panel causality

JEL Classification: C230, O400, Q430

Suggested Citation

Eggoh, Jude Comlanvi and Bangaké, Chrysost and Rault, Christophe and Rault, Christophe, Energy Consumption and Economic Growth Revisited in African Countries (September 27, 2011). CESifo Working Paper Series No. 3590, Available at SSRN: https://ssrn.com/abstract=1934168 or http://dx.doi.org/10.2139/ssrn.1934168

Jude Comlanvi Eggoh

affiliation not provided to SSRN ( email )

Chrysost Bangaké

University of Orleans ( email )

LEO/CNRS/UMR 6221
Rue de Blois, B.P. 6739
Orléans Cedex 2, 45067
France

Christophe Rault (Contact Author)

University of Orleans ( email )

Rue de Blois
BP 6739
LEO, Orleans, Orleans cedex 2 45067
France

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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