Energy consumption and economic growth in Ethiopia: A dynamic causal linkage

Nyasha, Sheilla; Gwenhure, Yvonne; Odhiambo, Nicholas M.

doi:10.1177/0958305x18779574

Cited by 39 publications

(17 citation statements)

References 89 publications

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“…However, long-run causality is confirmed by the negative sign and the significance of the error-correction term's coefficient. The error-correction is incorporated only in the equation where cointegration has been confirmed (see, among others, Nyasha et al, 2017).…”

Section: Results Of Cointegration Testsmentioning

confidence: 99%

Financial Development and Economic Growth in Uganda: A Multivariate Causal Linkage

Odhiambo

Nyasha

2020

Journal of African Business

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In this study, we have explored the dynamic causal relationship between financial development and economic growth in Uganda during the period from 1980 to 2015. Although the financegrowth nexus debate had been raging for decades, Uganda, just as many other low-income sub-Saharan African countries, has not yet received adequate coverage on the subject. To eliminate the variable-omission-bias associated with some previous studies, two intermittent variables namely, savings and inflation, have been included alongside financial development and economic growth in a multivariate Granger-causality setting. In addition, five proxies of financial sector development have been used in the current study, namely money supply, deposit money bank assets as a percentage of bank assets, liquid liabilities to GDP, private credit by deposit money banks to GD, and bank deposits to GDP. Using the ARDL approach, the findings of the study reveal that the direction of causality between financial development and economic growth in Uganda is not clear-cut. It varies from one model to the other, depending on the proxy used for financial development. When financial development is proxied by liquid liabilities to GDP and bank deposits to GDP, a unidirectional causality from financial development to economic growth is found to prevail. When deposit money bank assets to bank assets ratio is considered a proxy of financial development, a bi-directional causality between financial development and economic growth is found to predominate. Finally, when money supply and private credit by deposit money banks to GDP proxies are used, no causality is found to exist between financial development and economic growth in either direction. Based on these results, it is recommended that when drafting policies aimed at boosting economic growth, policymakers should target growth-led financial development proxies as policy implementation outcome may vary depending on the targeted financial development proxy.

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Section: Results Of Cointegration Testsmentioning

confidence: 99%

Financial Development and Economic Growth in Uganda: A Multivariate Causal Linkage

Odhiambo

Nyasha

2020

Journal of African Business

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“…It is also important to note that although the error-correction term has been included in all the Granger-causality equations (Equations 6-10), an error-correction term is only included in those equations where null hypothesis of no cointegration is rejected (see Nyasha, Gwenhure, & Odhiambo, 2017; Odhiambo, 2009, among others). Therefore, in this study, an ECM is included only in the regression of the remittances function (Equation 7).…”

Section: Data Analysis and Empirical Resultsmentioning

confidence: 99%

Does Remittance Inflow Granger-Cause Economic Growth in South Africa? A Dynamic Multivariate Causality Test

Nyasha

Odhiambo

2019

The Review of Black Political Economy

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In this study, we examine the dynamic causal relationship between remittances and economic growth in South Africa during the period from 1970 to 2017. Although South Africa is well-known for being a source of cross-border remittances to various countries, especially in the African continent, remittance inflows to South Africa have grown in the recent past. The growth in remittances, on one hand, and the need to fight against poverty and inequality in South Africa and ultimately improve economic growth, on the other hand, prompted the need for this study. The study uses the autoregressive distributed lag (ARDL) approach within a multivariate Granger-causality setting to examine the remittance-growth causal link—in an effort to address the variable-omission bias. The empirical findings of the study show that remittances and economic growth are not causally related in South Africa, irrespective of whether the estimations are done in the long run or in the short run. This finding, though contrary to the expectation, is not surprising, given the level of financial sector development in South Africa.

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“…Number of past studies examine the relationship between electricity consumption and GDP growth causal relationship, some of these studies focused on group of countries, while other study individual countries Sheilla et al (2016), Dossou, (2019, Hasan et al, (2017), Njindan (2014) and Nyasha et al, (2016). The fact that electricity consumption represent the highest percentage of energy consumption in most countries has shifted debates to what our study examine.…”

Section: Literature Reviewmentioning

confidence: 93%

The Causal Relationship Between, Electricity Consumption and Economic Growth in Kingdom of Saudi Arabia: A Dynamic Causality Test

Belal

Ahmed

Boujedra

2020

IJEEP

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The main objective of this study is to empirically test whether there exist short run and long run causality between, residential electricity consumption (REC), industrial electricity consumption (IEC) and economic growth in Kingdom of Saudi Arabia (KSA). Time series data for this study spans from 1990 to 2019. The study adopts granger causality and co. Integration analysis to estimate a vector error correction model (VECM). Results from error correction model show that there exist long run co. integration relationship between targeted variables. In addition, VECM results indicates that, industrial electricity consumption is inelastic to the changes in electricity prices with respect to economic growth, while residential electricity consumption shows elastic relationship. Granger causality test indicates there is unidirectional relationship, running from economic growth to industrial electricity consumption, which lead to accept, proactive (conservative) hypothesis. In this case, energy conservative policy will have little or no effect on economic growth. Nevertheless, results proof acceptance of neutrality hypothesis in the case of residential electricity consumption and economic growth. The study therefore, recommends that in Saudi Arabia, policy makers should consider expanding their energy-mix alternatives, in order to cope with the future industrial electricity demand arising from increased economic growth.

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Energy consumption and economic growth in Ethiopia: A dynamic causal linkage

Abstract: In

Cited by 39 publications

References 89 publications

Financial Development and Economic Growth in Uganda: A Multivariate Causal Linkage

Financial Development and Economic Growth in Uganda: A Multivariate Causal Linkage

Does Remittance Inflow Granger-Cause Economic Growth in South Africa? A Dynamic Multivariate Causality Test

The Causal Relationship Between, Electricity Consumption and Economic Growth in Kingdom of Saudi Arabia: A Dynamic Causality Test

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