Journal of Energy in Southern Africa
versión On-line ISSN 2413-3051
versión impresa ISSN 1021-447X
FOWOWE, Babajide. Energy consumption and real GDP: Panel co-integration and causality tests for sub-Saharan African countries. J. energy South. Afr. [online]. 2012, vol.23, n.1, pp.8-14. ISSN 2413-3051.
This paper investigates the causal relationship between energy consumption and real GDP in 14 Sub-Saharan African countries over the period 1971-2004. The results of panel co-integration tests showed that energy consumption and real GDP do not have a stable long-run equilibrium relationship. We find that for all members of the panel, there is homogenous causality from energy consumption to real GDP and vice versa. This bi-directional causality supports the feedback hypothesis.
Palabras clave : energy consumption; Sub-Sahara Africa; panel co-integration; real GDP.