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Does Trade Liberalization Affect Energy Saving in Nigeria?

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  • Aliyu Alhaji Jibrilla

    (Adamawa State University, P.M.B 25 Mubi, Adamawa State, Nigeria.)

Abstract

The study empirically examines the role of trade openness and other determinants in explaining the intensity of energy use in Nigeria using annual data from 1981 to 2015. The paper uses an auto-regressive distributed lag (ARDL) model in interpreting both long-run energy intensity as a co integrating relation, and its short-run dynamics. The robustness of ARDL results is verified using Dynamic OLS (DOLS) estimation technique. The results provide evidence of a Cointegration relation between energy intensity and its determinants. The results provide evidence that trade only significantly reduces energy intensity in the short run. Meanwhile, the results also show that income growth and industry value added have significant reducing effects on energy intensity. The results also raise some important policy issues, particularly on the inflows of foreign aid.

Suggested Citation

  • Aliyu Alhaji Jibrilla, 2018. "Does Trade Liberalization Affect Energy Saving in Nigeria?," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 6(4), pages :493-515, December.
    • Handle: RePEc:ani:ipjhss:v:6:y:2018:i:4:p:493-515
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    More about this item

    Keywords

    Trade Openness; Energy intensity; ARDL;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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