Energy-growth dynamics in the presence of income of 5 oil-exporting African countries : a time series approach

Abstract

This study examines the relationship between economic growth and energy consumption in five African oil-exporting countries—Nigeria, Congo, Egypt, Algeria, and Gabon—from 1980 to 2021. Using Vector Autoregression (VAR), Vector Error Correction Model (VECM), and Granger causality tests, distinct causal patterns are identified. In Algeria, GDP and energy consumption show no significant interaction. In Egypt, energy consumption drives GDP growth. Gabon demonstrates strong short- and long-term causality between the variables. In Nigeria, energy consumption influences GDP in the short term, while in Congo, GDP has a significant long-term effect on energy consumption. These findings highlight varying policy implications for energy and economic planning in each country.