Energy Consumption and Output Growth in Nigeria A Generalized Method of Moments Approach
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Business and Social Sciences Review (BSSR)
This study determines the functional relationship between energy consumption and output growth in Nigeria. Methodologically, the Generalized Method of Moments (GMM) model was modeled to analysis the nature of the impacts, where output growth is presumed to depend upon changes in various indicators of energy consumption and a list of instrumental variables (IV) which include the output growth, electricity consumption, gas utilization, petroleum consumption, population, government recurrent expenditures on economic services, government capital expenditures on economic services, estimated over the period 1979-2008. The model ascertained the extent in which energy consumption does lead to changes in output growth. The results show that changes in electricity consumption does not bring about output growth significance levels. These results indicate that electricity consumption is not a good explanatory variable and that past values of electricity consumption does not improve forecasts of movements in economic growth.
Odior, E. S. (2011), “Energy Consumption and Output Growth in Nigeria: A Generalized Method of Moments Approach” Business and Social Sciences Review (BSSR), Volume 1, Number 1, London, UK, Pp, 88 – 101