QS 35 Q43:81–83
. Say: “If the All-Merciful had a child, I
would be the first to worship.”
. Glory be to the Lord of the heavens and
earth, Lord of the Throne, above what they as-
. So leave them to sink further in false-
hood, and amuse themselves, till they encoun-
ter the Day they have been promised.
. Dis: «Si le Tout Miséricordieux avait un
enfant, alors je serais le premier à l’adorer».
. Gloire au Seigneur des cieux et de la
terre, Seigneur du Trône; Il transcende ce
. Laisse-les donc s’enfoncer dans leur
The study analyses the structural break impact on the relationship between energy consumption and foreign direct investment in Nigeria from 1970 to 2015. The study accounts for the structural break and estimates the short-run and long-run relationship between energy consumption and foreign direct investment using ARDL estimation technique and Bai-Perron Least Squares Break Point. It was observed from the findings that a strong long-run cointegrating relationship exist between energy consumption and foreign direct investment with and without structural break. The structural break test reveals a break period of 1995 which supports the occurrence of oil price review by OPEC in 1995. Also, the ARDL estimate result revealed that energy consumption, trade and exchange rate adversely attract foreign direct investment, while GDP positively attract foreign direct investment both in the short-run and long-run in Nigeria. The study concludes that even though Nigeria’s GDP is trending towards attracting FDI into the economy, energy consumption, trade and exchange rate obstruct the attraction through the additional cost incurred as a result of imbalances in the variables. A major recommendation from the findings is that energy policies need quick re-visit in Nigeria. However, they will - due to the pressure exerted by the constant growth of the population, i.e. on the demand side, demand inflation will constantly manifest.
This paper empirically examines the electricity consumption - economic growth nexus in Uganda for the period 1982 to 2013, with a view to contributing to the body of literature on this topic and informing energy policy design in Uganda. Using capital stock as an intermittent variable in the causality framework, the paper employs Johansen-Juselius (1988, 1995) multivariate cointegration and VECM based Granger causality tests and finds a bidirectional causality between electricity consumption and economic growth in the long-term and distinct causal flow from economic growth to electricity consumption in the short-run, and short-term and long-term Granger causality from capital stock to economic growth, with short-run feedback in the opposite direction. Therefore, it implies that firstly, the Government of Uganda (GoU) can implement conservation policies only through reducing energy intensity and promoting efficient energy use to avoid decline in output and secondly, that the GoU should intensify its efforts towards capital accumulation in order to realize sustainable economic growth. Lastly, the empirical evidence that electricity consumption influences some short-term capital accumulation supports the GoU’s efforts to allow private sector investment in the electricity sector in an effort to increase electricity supply.
Worldwide, there is a huge demand for the application of renewable energy technologies mainly due to the current environmental problems that mostly originated from our fossil-based energy system. This study is aiming at presenting areas which require a bigger share of renewables from the global energy mix but only for economic reasons. We highlight that these alternatives can bear with advantageous economic effects compared to the non-renewable ones. We take into account renewables-based business opportunities, and then we discuss the positive effects of renewables on economic development. Finally, we look at the issuant security of energy supply and talk about beneficial labor market impacts caused by renewable energies.
This study adopted two-stage DEA to estimate the technical efficiency scores and assess the impact of the two most important components of fossil fuel associated with oil production on macroeconomic efficiency of Seven oil producing African countries during 2005-2012. Our results showed that increasing the consumption of natural gas would improve technical efficiency. Furthermore, increasing the share of fossil fuel in total energy consumption has negative effect on the efficiency of the economies of the top African oil producers. Also, we found that increasing the consumption of primary energy improves efficiency in these economies. We therefore, recommend that governments and other stakeholders in the energy industry should adopt inclusive strategies that will promote the use of natural gas in the short term. However, in the long-run, efforts should be geared towards increasing the use of primary energy, thereby reducing the percentage share of fossil fuel in total energy consumption.
A New Keynesian framework with endogenous energy production is proposed to investigate the role of monetary policy in addressing disturbances in energy markets. The novelty of the model lies in the endogenous production of energy with convex costs, explicit modeling of goods with different degrees of energy-dependency and sectoral price rigidities. Our analyses prescribe the desirable monetary responses to four types of energy price shocks, highlighting the distinct characteristics of each shock and affirming the need for diverse policy considerations. We also found several points of divergence in relation to previous studies on addressing energy supply shocks. In addition, we shed light on the role of sectoral price rigidities in the shocks’ propagation.
This study examines the dynamic impacts of oil prices on stock market development in four oil exporting sub-Saharan African countries in the period of 1989-2015. The Arbitrage Pricing Theory (APT) is used as the theoretical framework where stock market prices are hypothesized to be fully reflective of all available information. Static panel data (Pooled OLS, panel Fixed Effect Model, panel Random Effect Model) and dynamic panel model of Generalized Method of Moments (GMM) were employed in the estimation. The estimation of the static panel model shows that oil prices, exchange rates, gross domestic product, inflation and the corruption index have a positive and significant impact on stock market development. However, there is a slight improvement from the estimation of the GMM dynamic panel model which confirmed that oil prices, exchange rates, gross domestic product, investment, inflation and the corruption index have a positive and significant impact on stock market development. The study therefore recommends that investors in selected the Sub-Sahara Africa (SSA) stock market need to be cognizant of the varying impacts of macroeconomic indicators, particularly those that have been found to exert strong influence on stock returns like oil prices, exchange rates, inflation and the corruption index.
Petroleum is the most important resource for global energy production, far exceeding the role of coal and natural gas, the role of river energy and wind energy, and also the role of nuclear fuel.
All highly industrialized countries are making great efforts to ensure the energy needs of the functioning of economies under the conditions of fierce global competition. None of the world’s first 10-12 economies can give up on petroleum imports, and the exporting countries benefit from large financial resources from petroleum.
Saudi Arabia, Qatar, United Arab Emirates, Venezuela, Russia and other petroleum-rich countries secure themselves significant foreign revenue for their economic development, defense and overall well-being.
The study examined the impact of electricity supply on economic diversification in Nigeria, using time series data from 1981 to 2016. The study employed descriptive analysis and Autoregressive Distributed Lag (ARDL) techniques. The Augmented Dickey-Fuller unit root test showed that the variables are integrated of different orders.
The result from the Bounds co-integration test to show the presence of a long-run relationship among the variables was inconclusive. The short run (ARDL) model, however, indicated a positive insignificant relationship between electricity supply and economic diversification in Nigeria. The findings of the study revealed that the electricity supply had not played a fundamental role in enhancing economic diversification in Nigeria.
The study, therefore, recommended that for Nigeria to drive economic diversification through electricity supply, the government should fix the electricity supply problem which can be achieved by short-term action to reduce technical faults through maintenance of the transmission and distribution infrastructure or long-term interventions to expand generating capacity.