Electricity Consumption and Economic Growth in Nigeria

Ogundipe, Adeyemi A. and Apata, Ayomide (2013) Electricity Consumption and Economic Growth in Nigeria. Journal of Business Management and Applied Economics, 11 (4).

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Abstract

The paper seeks to examine the relationship between electricity consumption and economic growth in Nigeria using the Johansen and Juselius Co-integration technique based on the Cobb-Douglas growth model covering the period 1980-2008. The study adopted also conducted the Vector Error Correction Modelling and the Pairwise Granger Causality test in order to empirically ascertain the error correction adjustment and direction of causality between electricity consumption and economic growth. The study found the existence of a unique co-integrating relationship among the variables in the model with the indicator of electricity consumption impacting significantly on growth. Also, the study shows an evidence of bi-directional causal relationship between electricity consumption and economic growth. Prominent among the policy recommendation, is the need to strengthen the effectiveness of energy generating agencies by ensuring periodic replacement of worn-out equipment in order to drastically curtail transmission power losses.

Item Type:	Article
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User:	Mrs Patricia Nwokealisi
Date Deposited:	31 Oct 2013 15:37
Last Modified:	31 Oct 2013 15:37
URI:	http://eprints.covenantuniversity.edu.ng/id/eprint/1777

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