Energy Consumption, Trade Openness and Economic Growth: Empirical Evidence from Nigeria

<p>This paper explores the link between energy consumption, trade openness and economic growth in Nigeria between 1971 and 2015 using Vector error correction model (VECM). The result of Johansen co-integration test shows that the three series are co-integrated, hence long-run relationship was...

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Autor principal:	Yusuf Opeyemi Akinwale
Formato:	article
Lenguaje:	EN
Publicado:	EconJournals 2021
Materias:	Environmental sciences GE1-350 Energy industries. Energy policy. Fuel trade HD9502-9502.5
Acceso en línea:	https://doaj.org/article/27c08ff4763f4f1db8903b5fd3224d79
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spelling	oai:doaj.org-article:27c08ff4763f4f1db8903b5fd3224d792021-11-12T07:27:31ZEnergy Consumption, Trade Openness and Economic Growth: Empirical Evidence from Nigeria2146-4553https://doaj.org/article/27c08ff4763f4f1db8903b5fd3224d792021-11-01T00:00:00Zhttps://econjournals.com/index.php/ijeep/article/view/11617https://doaj.org/toc/2146-4553<p>This paper explores the link between energy consumption, trade openness and economic growth in Nigeria between 1971 and 2015 using Vector error correction model (VECM). The result of Johansen co-integration test shows that the three series are co-integrated, hence long-run relationship was established among them. Causality analysis in VECM shows that there is a long run causality from economic growth and trade openness to energy consumption as well as from economic growth and energy consumption to trade openness. The results of the short run causality indicate the Granger causality from economic growth to trade openness only. These outcomes suggest that trade openness could be boosted by improving production in all sectors of the economy and not the other way round. Also, decisive improvement in economic activities would lead to increase in energy use in the country as the size of the current energy consumption is too weak to cause economic expansion in Nigeria. Furthermore, due to the huge energy gap between demand and supply, Nigerian government should utilise the low carbon energy options towards a sustainable economic growth trajectory.</p><p><strong>Keywords:</strong> Economic growth; Vector error correction model; Energy consumption; Co-integration; Trade openness</p><p><strong>JEL Classifications:</strong> C01, F14, F41, Q43</p><p>DOI: <a href="https://doi.org/10.32479/ijeep.11617">https://doi.org/10.32479/ijeep.11617</a></p>Yusuf Opeyemi AkinwaleEconJournalsarticleEnvironmental sciencesGE1-350Energy industries. Energy policy. Fuel tradeHD9502-9502.5ENInternational Journal of Energy Economics and Policy, Vol 11, Iss 6, Pp 373-380 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	Environmental sciences GE1-350 Energy industries. Energy policy. Fuel trade HD9502-9502.5
spellingShingle	Environmental sciences GE1-350 Energy industries. Energy policy. Fuel trade HD9502-9502.5 Yusuf Opeyemi Akinwale Energy Consumption, Trade Openness and Economic Growth: Empirical Evidence from Nigeria
description	<p>This paper explores the link between energy consumption, trade openness and economic growth in Nigeria between 1971 and 2015 using Vector error correction model (VECM). The result of Johansen co-integration test shows that the three series are co-integrated, hence long-run relationship was established among them. Causality analysis in VECM shows that there is a long run causality from economic growth and trade openness to energy consumption as well as from economic growth and energy consumption to trade openness. The results of the short run causality indicate the Granger causality from economic growth to trade openness only. These outcomes suggest that trade openness could be boosted by improving production in all sectors of the economy and not the other way round. Also, decisive improvement in economic activities would lead to increase in energy use in the country as the size of the current energy consumption is too weak to cause economic expansion in Nigeria. Furthermore, due to the huge energy gap between demand and supply, Nigerian government should utilise the low carbon energy options towards a sustainable economic growth trajectory.</p><p><strong>Keywords:</strong> Economic growth; Vector error correction model; Energy consumption; Co-integration; Trade openness</p><p><strong>JEL Classifications:</strong> C01, F14, F41, Q43</p><p>DOI: <a href="https://doi.org/10.32479/ijeep.11617">https://doi.org/10.32479/ijeep.11617</a></p>
format	article
author	Yusuf Opeyemi Akinwale
author_facet	Yusuf Opeyemi Akinwale
author_sort	Yusuf Opeyemi Akinwale
title	Energy Consumption, Trade Openness and Economic Growth: Empirical Evidence from Nigeria
title_short	Energy Consumption, Trade Openness and Economic Growth: Empirical Evidence from Nigeria
title_full	Energy Consumption, Trade Openness and Economic Growth: Empirical Evidence from Nigeria
title_fullStr	Energy Consumption, Trade Openness and Economic Growth: Empirical Evidence from Nigeria
title_full_unstemmed	Energy Consumption, Trade Openness and Economic Growth: Empirical Evidence from Nigeria
title_sort	energy consumption, trade openness and economic growth: empirical evidence from nigeria
publisher	EconJournals
publishDate	2021
url	https://doaj.org/article/27c08ff4763f4f1db8903b5fd3224d79
work_keys_str_mv	AT yusufopeyemiakinwale energyconsumptiontradeopennessandeconomicgrowthempiricalevidencefromnigeria
_version_	1718431096732909568

Energy Consumption, Trade Openness and Economic Growth: Empirical Evidence from Nigeria

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