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Revisiting the Electricity Consumption-Economic Growth Nexus in Angola: The Role of Exports, Imports and Urbanization

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  • Sakiru Adebola Solarin

    (Department of Knowledge Management, Economics and Quantitative Analysis of Business, Multimedia University Malaysia, 75450 Melaka, Malaysia,)

  • Muhammad Shahbaz

    (Department of Management Sciences, COMSATS Institute of Information Technology, Lahore, Pakistan)

  • Syed Jawad Hussain Shahzad

    (COMSATS Institute of Information Technology, Islamabad Pakistan & University of Malaysia Terengganu, Malaysia.)

Abstract

The present study aims to reinvestigate the relationship between electricity consumption and economic growth in Angola by introducing exports, imports and urbanization in the production function. We utilize the combined cointegration method to test the long-run relationship for the period of 1971-2012. Whilst accommodating structural breaks, the autoregressive distributed lag bounds test approach is applied to examine the robustness of the long-run relationship in the variables. The results reveal that electricity consumption boosts economic growth but urbanization impairs it. The vector error correction method causality results unveil the feedback relationship of electricity consumption with economic growth, exports and imports. It is, therefore, suggested that the policy makers should formulate the policies to improve the electricity supply that in turn will enhance the economic growth.

Suggested Citation

  • Sakiru Adebola Solarin & Muhammad Shahbaz & Syed Jawad Hussain Shahzad, 2016. "Revisiting the Electricity Consumption-Economic Growth Nexus in Angola: The Role of Exports, Imports and Urbanization," International Journal of Energy Economics and Policy, Econjournals, vol. 6(3), pages 501-512.
    • Handle: RePEc:eco:journ2:2016-03-15
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    References listed on IDEAS

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    Cited by:

    1. Hamisu S. Ali & Solomon P. Nathaniel & Gizem Uzuner & Festus V. Bekun & Samuel A. Sarkodie, 2020. "Trivariate Modelling of the Nexus between Electricity Consumption, Urbanization and Economic Growth in Nigeria: Fresh Insights from Maki Cointegration and Causality Tests," Research Africa Network Working Papers 20/010, Research Africa Network (RAN).
    2. Villanthenkodath, Muhammed Ashiq & Mahalik, Mantu Kumar, 2021. "Does economic growth respond to electricity consumption asymmetrically in Bangladesh? The implication for environmental sustainability," Energy, Elsevier, vol. 233(C).
    3. Nyiko Worship Hlongwane & Mpho Lenoke & Olebogeng David Daw, 2023. "An Analysis of Electricity Generation, Supply, and Economic Growth in Selected SADC Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 482-493, November.
    4. Solomon P. Nathaniel & Festus V. Bekun, 2020. "Electricity Consumption, Urbanization and Economic Growth in Nigeria: New Insights from Combined Cointegration amidst Structural Breaks," Working Papers of the African Governance and Development Institute. 20/013, African Governance and Development Institute..
    5. Tomiwa Sunday Adebayo & Abraham Ayobamiji Awosusi & Jamiu Adetola Odugbesan & Gbenga Daniel Akinsola & Wing-Keung Wong & Husam Rjoub, 2021. "Sustainability of Energy-Induced Growth Nexus in Brazil: Do Carbon Emissions and Urbanization Matter?," Sustainability, MDPI, vol. 13(8), pages 1-21, April.
    6. Alexander Bass, 2018. "Financial Markets and Electricity Consumption Nexus in Russia," International Journal of Energy Economics and Policy, Econjournals, vol. 8(3), pages 82-86.
    7. Titus Isaiah Zayone & Shida Rastegari Henneberry & Riza Radmehr, 2020. "Effects of Agricultural, Manufacturing, and Mineral Exports on Angola’s Economic Growth," Energies, MDPI, vol. 13(6), pages 1-17, March.
    8. Balsalobre-Lorente, Daniel & Driha, Oana M. & Bekun, Festus & Sinha, Avik & Fatai Adedoyin, Festus, 2020. "Consequences of COVID-19 on the social isolation of the Chinese economy: accounting for the role of reduction in carbon emissions," MPRA Paper 102894, University Library of Munich, Germany, revised 2020.
    9. Hlalefang Khobai, 2018. "Electricity Consumption and Economic Growth: A Panel Data Approach for Brazil, Russia, India, China and South Africa Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 8(3), pages 283-289.
    10. Justyna Tomala & Mateusz Mierzejewski & Maria Urbaniec & Sergio Martinez, 2021. "Towards Sustainable Energy Development in Sub-Saharan Africa: Challenges and Opportunities," Energies, MDPI, vol. 14(19), pages 1-18, September.

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    More about this item

    Keywords

    Electricity Consumption; Economic Growth; Combined Cointegration Test; Granger Causality Test;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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