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

Show simple item record Nyasha , Sheilla 2016-05-31T07:11:56Z 2016-05-31T07:11:56Z 2016-05
dc.description.abstract In this study, we have explored the causal relationship between energy consumption and economic growth in Ethiopia, during the period from 1971 to 2013. We have employed a multivariate Granger-causality framework that incorporates financial development, investment and trade openness as intermittent variables – in an effort to address the omission-of-variable bias. Based on the newly developed ARDL bounds testing approach to co-integration and the Error-Correction Model-based causality model, our results show that in Ethiopia, there is a distinct unidirectional Granger-causality from economic growth to energy consumption. These results apply, irrespective of whether the estimation is done in the short run or in the long run. We recommend that policy makers in Ethiopia should consider expanding their energy-mix options, in order to cope with the future demand arising from an increase in the real sector growth. en
dc.language.iso en en
dc.subject Ethiopia, Energy Consumption, Economic Growth, Granger-Causality en
dc.title Energy consumption and economic growth in Ethiopia: A dynamic causal linkage en
dc.type Working Paper en
dc.description.department Colleges of Economic and Management Sciences en
dc.contributor.author2 Gwenhure, Yvonne
dc.contributor.author3 Odhiambo, Nicholas M

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