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Journal of Energy in Southern Africa

On-line version ISSN 2413-3051
Print version ISSN 1021-447X

J. energy South. Afr. vol.23 n.1 Cape Town  2012


Energy consumption and real GDP: Panel co-integration and causality tests for sub-Saharan African countries



Babajide Fowowe

University of Ibadan




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.

Keywords: energy consumption, Sub-Sahara Africa, panel co-integration, real GDP



Full text available only in PDF format.




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Received 28 November 2010
Revised 2 July 2011

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