Assessing the Nexus among Energy Consumption, Foreign Direct Investment and Economic Growth in Sub-Saharan Africa

Authors

Olanrele1 Iyabo A., Nigerian Institute of Social and Economic Research (NISER).Follow
Awode Segun S., Nigerian Institute of Social and Economic Research (NISER).

Keywords

Economic growth, energy consumption, foreign direct investment, SubSaharan Africa

Abstract

This study examines the dynamic relationship among energy consumption, foreign direct investment, and economic growth in Sub-Sahara Africa. Beyond assessing the tripartite causal relationship, the study investigates the extent of impacts among energy consumption, foreign direct investment, and economic growth using the Generalised Method of Moments. The study utilises data from 42 Sub-Saharan African countries spanning 1991 to 2018. Findings from the study show that a percentage increase in energy consumption engenders economic growth by 1.3 percent. Conversely, economic growth increases energy consumption by 0.004 percent. Also, there is a significant one-way causality running from foreign direct investment (FDI) to economic growth. The link between energy consumption and FDI were not statistically significant in both directions. The study advocates that government in Sub-Saharan Africa should ensure more energy access to enhance economic growth.

Author Bio

The authors are staff of the Economics and Business Policy Department, Nigerian Institute of Social and Economic Research (NISER).

Publication Title

CBN Journal of Applied Statistics

Issue

No. 1

Volume

Vol. 13

First Page

27

Last Page

53

Recommended Citation

Iyabo A., Olanrele1 and Segun S., Awode (2022) "Assessing the Nexus among Energy Consumption, Foreign Direct Investment and Economic Growth in Sub-Saharan Africa," CBN Journal of Applied Statistics (JAS): Vol. 13: No. 1, Article 3.
Available at: https://dc.cbn.gov.ng/jas/vol13/iss1/3