Energy consumption and economic growth nexus in Somalia: an empirical evidence from nonlinear ARDL technique

Autor: Abdimalik Ali Warsame, Ahmed Abdiaziz Alasow, Mohamed Ahmed Salad
Jazyk: angličtina
Rok vydání: 2024
Předmět:
Zdroj: International Journal of Sustainable Energy, Vol 43, Iss 1 (2024)
Druh dokumentu: article
ISSN: 14786451
1478-646X
1478-6451
DOI: 10.1080/14786451.2023.2287780
Popis: ABSTRACTThe objective of this study is to ascertain the asymmetric impact of energy consumption on economic growth in Somalia for the period 1985–2017. A novelty econometric method of the Nonlinear Autoregressive distributed lag (NARDL) technique and the Granger causality test are employed to confirm the aim of the study. The empirical findings revealed the presence of asymmetric co-integration between energy consumption and economic growth in the long run. Both positive and negative shocks in energy consumption enhance economic growth in Somalia in the long run, even though, the positive shock has a stronger significant effect on economic growth in the long run. In contrast, a negative shock in energy consumption causes economic growth, thus, confirming the energy-led growth hypothesis. Hence, this calls for the policymakers to devise investment policies that are aimed at the improvement of foreign and local investments in energy sector.
Databáze: Directory of Open Access Journals
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