The Nexus among Energy Consumption, Economic Growth and Trade Openness: Evidence from West Africa

Ming Qi, Jing Xu, Nnenna Bridget Amuji, Shumingrui Wang, Fengqian Xu and Huan Zhou
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Ming Qi: School of Economics and Management, China University of Petroleum (Beijing), Beijing 102249, China
Jing Xu: School of Economics and Management, China University of Petroleum (Beijing), Beijing 102249, China
Nnenna Bridget Amuji: Darla Moore Business School, University of South Carolina, Columbia, SC 29208, USA
Shumingrui Wang: School of Economics and Management, China University of Petroleum (Beijing), Beijing 102249, China
Fengqian Xu: School of Economics and Management, China University of Petroleum (Beijing), Beijing 102249, China
Huan Zhou: School of Economics and Management, China University of Petroleum (Beijing), Beijing 102249, China

Sustainability, 2022, vol. 14, issue 6, 1-22

Abstract: The West African region has experienced high economic development. With the increasing energy consumption and emissions, how to coordinate the relationship among energy consumption, trade opening, and economic growth, and how to develop a low-carbon development pattern are becoming the most important issues in West Africa. This paper uses the tri-variable Toda-Yamamoto model to investigate the dynamic interactions among energy consumption, economic growth, and trade in West Africa. The findings indicate that, first, the positive impact of energy consumption on economic growth in West Africa has shown a significant lag effect, and energy consumption has a strong trade-dependent relationship to economic promotion. Trade opening and economic growth in West Africa are mutually reinforcing in the long run. Next, the role of foreign trade in boosting economic growth is more significant in countries with lower levels of economic development. Finally, when replacing the energy consumption indicator with CO 2 emissions, the results remain robust. Considering the regional development differences, grouping countries by GDP per capita reveals that there exists a bilateral causal relationship between energy consumption and trade openness in the higher economic development group. The impact of trade openness on economic growth is more remarkable in countries with lower levels of economic development in West Africa. The findings have important implications for policymakers in understanding the economic development pattern of West Africa. It is necessary for West African countries to develop an integrated energy and trade policy in order to maintain long-term sustainable economic growth.

Keywords: energy consumption; economic growth; trade openness; CO 2 emission; West Africa (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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