The Role of Globalisation on Energy Consumption in Nigeria. Implication for Long Run Economic Growth. ARDL and VECM Analysis
Keywords:
globalisation, financial sector development, energy consumption, ARDL, VECM
Abstract
This study explores the relationship between globalization energy consumption and economic growth for Nigeria by explaining the contributions of financial development and urbanization from 1975 to 2011 The cointegration test proposed by Pesaran and Shin 1995 and Pesaran et el 2001 is applied to estimate the long-run and short-run relationships among the variables in company of VECM Granger causality framework to establish the direction of causality over the period After confirming the existence of cointegration using Johansen approach the overall results from the estimation of an ARDL energy demand function reveal that in the long run the index of globalization measured in three dimensions - economic social and overall globalization leads to a decline in energy consumption especially when combined with the marginal contribution from of economic growth financial development and urbanization This study found financial sector development insignificant in influencing energy consumption in Nigeria In general the results highlight the weakness of the Nigerian financial sector in stimulating long run economic growth through resource mobilisation and allocation Urbanization are the key factors leading to increased energy demand in the long run We found a feedback relationship between globalization and energy consumption in the long run The unidirectional causality running from energy consumption to financial development economic growth
Downloads
- Article PDF
- TEI XML Kaleidoscope (download in zip)* (Beta by AI)
- Lens* NISO JATS XML (Beta by AI)
- HTML Kaleidoscope* (Beta by AI)
- DBK XML Kaleidoscope (download in zip)* (Beta by AI)
- LaTeX pdf Kaleidoscope* (Beta by AI)
- EPUB Kaleidoscope* (Beta by AI)
- MD Kaleidoscope* (Beta by AI)
- FO Kaleidoscope* (Beta by AI)
- BIB Kaleidoscope* (Beta by AI)
- LaTeX Kaleidoscope* (Beta by AI)
How to Cite
Published
2018-01-15
Issue
Section
License
Copyright (c) 2017 Authors and Global Journals Private Limited
This work is licensed under a Creative Commons Attribution 4.0 International License.