 Do Foreign Direct Investment and Trade lead to Lower Energy Intensity? Evidence from Selected African CountriesInternational Journal of Energy Economics and Policy, 2016, vol. 6, issue 1, 1-5 Abstract: The aim of this study is to examine the impact of foreign direct investment (FDI) and trade on energy intensity in a sample of six sub-Saharan countries. It applies the bounds testing approach to co-integration and Granger causality analysis to annual data covering the time period from 1970 to 2011. The results indicate evidence for energy-reducing effect of FDI in Benin and Nigeria, while in Cote d Ivoire and Togo, energy efficiency declines as FDI increases. The results also indicate that energy intensity is negatively affected by imports in Cameroon, Cote d Ivoire and Togo, suggesting that trade improves energy efficiency. Results of Granger causality suggest that in the short-run, energy intensity is caused by FDI in Cote d Ivoire and Nigeria, and by imports in Cameroon and Nigeria. Keywords: Energy Intensity; Foreign Direct Investment; Trade (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2016-01-01 Access Statistics for this article International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk More articles in International Journal of Energy Economics and Policy from Econjournals |
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