Energy Consumption and Economic Growth: Evidence from COMESA Countries

Chali Nondo, Mulugeta Kahsai () and Peter Schaeffer
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Mulugeta Kahsai: Department of Technology, Virginia State University

Working Papers from Regional Research Institute, West Virginia University

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 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; our results provide strong evidence 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 and find a long-run bidirectional relationship between GDP and energy consumption. Further, our analyses reveal that causation runs from energy consumption to GDP for low income COMESA countries.

Keywords: energy consumption; GDP; panel causality tests; COMESA (search for similar items in EconPapers)
JEL-codes: O13 O55 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2010
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Citations: View citations in EconPapers (9)

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Working Paper: Energy Consumption and Economic Growth: Evidence from COMESA Countries (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:rri:wpaper:2010wp01

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