Energy consumption and economic growth nexus in Tanzania: An ARDL bounds testing approach
In this paper, we examine the intertemporal causal relationship between energy consumption and economic growth in Tanzania during the period of 1971-2006. Unlike the majority of the previous studies, we employ the newly developed autoregressive distributed lag (ARDL)-bounds testing approach by Pesaran et al. [2001. Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics 16, 289-326] to examine this linkage. We also use two proxies of energy consumption, namely total energy consumption per capita and electricity consumption per capita. The results of the bounds test show that there is a stable long-run relationship between each of the proxies of energy consumption and economic growth. The results of the causality test, on the other hand, show that there is a unidirectional causal flow from total energy consumption to economic growth and a prima-facie causal flow from electricity consumption to economic growth. Overall, the study finds that energy consumption spurs economic growth in Tanzania.
Year of publication: |
2009
|
---|---|
Authors: | Odhiambo, Nicholas M. |
Published in: |
Energy Policy. - Elsevier, ISSN 0301-4215. - Vol. 37.2009, 2, p. 617-622
|
Publisher: |
Elsevier |
Subject: | Tanzania Energy consumption Economic growth |
Saved in:
Saved in favorites
Similar items by person
-
Is tourism development an engine for economic growth? : the Zambian experience
Odhiambo, Nicholas M., (2012)
-
Carbon footprint management and economic growth in Kenya : an empirical investigation
Odhiambo, Nicholas M., (2012)
-
Growth, employment and poverty in South Africa : in search of a trickle-down effect
Odhiambo, Nicholas M., (2011)
- More ...