How crude oil consumption impacts on economic growth of Sub-Saharan Africa?

Niaz Bashiri Behmiri and Jose Ramos Manso

Energy, 2013, vol. 54, issue C, 74-83

Abstract: This study investigates the causality relationship between crude oil consumption and economic growth in twenty three Sub-Saharan African countries. We applied a multivariate panel Granger causality framework during 1985–2011 and we included crude oil price as the control variable of the model. The results indicate that in the short-run, there is a bi-directional causality relationship between crude oil consumption and economic growth in oil importing region and there is a uni-directional causality relationship from crude oil consumption to GDP in oil exporting region. However, in the long-run there is a bi-directional causality relationship between them in both regions. Therefore, reducing crude oil consumption without employing appropriate policies adversely impacts on economic growth of Sub-Saharan Africa. Hence, in order to reduce crude oil dependency of the region policymakers should pay more attention to the issue of energy efficiency programs.

Keywords: Crude oil consumption; GDP; Panel Granger causality; Panel co-integration (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (54)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:54:y:2013:i:c:p:74-83

DOI: 10.1016/j.energy.2013.02.052

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