Effect of Energy Consumption on GDP Evidence from (Ten) Sub-Saharan Africa Countries

Muhammad Maimuna Yakubu, Gylych Jelilov

Abstract


There is no uncertainty that Energy plays a very important part in economic growth and development of any country and increasing access to modernized systems of energy is vital to unlocking rapid economic and social development in sub Saharan Africa. Therefore, this paper has empirically examined the causality between energy and economic growth using a consistent data set and methodology for 10 sub-Saharan Africa countries for the period 1990-2012. By applying Augmented Dickey Fuller, co-integration and causality tests the study finds causality running from GDP to energy consumption in Nigeria, in Ghana causality runs from energy consumption to GDP, for Namibia causality runs from GDP to energy consumption but not vice versa and for Cote d’ivore causality runs from gross capital formation to GDP. And no evidence of causality found in Togo, Cameroon, Botswana, Ethiopia, South Africa and Benin.


Keywords


Energy Consumption; Economic Growth; Development; Causality

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DOI: http://dx.doi.org/10.20321/nilejbe.v3i5.87

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