Energy consumption, output and trade nexus in North Africa

Mehdi Ben Jebli () and Slim Ben Youssef

MPRA Paper from University Library of Munich, Germany

Abstract: This study uses panel cointegration techniques to examine the impact of energy consumption, and trade on economic growth for five North Africa countries within a multivariate framework over the period 1980-2009. Short-run dynamic relationship shows that there is evidence of one way short-run relationship from i) output, exports, and capital to imports, ii) fossil fuels consumption to exports, iii) exports to capital and iv) labor to combustible renewables and waste consumption. The vector error correction model shows that there is evidence of long-run relationship running from i) combustible renewables and waste consumption, fossil fuels consumption, exports, imports, capital, and labor to output, ii) fossil fuels consumption, exports, imports, capital, and labor to combustible renewables and waste consumption, and iii) combustible renewables and waste consumption, fossil fuels consumption, exports, capital, and labor to imports. The long-run elasticities show that combustible renewables and waste consumption is not statistically significant and only fossil fuels consumption can affect output while trade is statistically significant and have a negative impact on output through imports and positive impact through exports. The policy implication of these results is that, in these countries, trade openness is not sufficiently efficient to incite the use of energies for production.

Keywords: Energy consumption; panel cointegration, North Africa countries, trade. (search for similar items in EconPapers)
JEL-codes: C33 F43 Q56 (search for similar items in EconPapers)
Date: 2013-06
New Economics Papers: this item is included in nep-afr, nep-ara and nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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