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Date: Spring 2021
From: Journal of Developing Areas(Vol. 55, Issue 2)
Publisher: Tennessee State University
Document Type: Article
Length: 5,059 words
Lexile Measure: 1410L

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Abstract :

Many SSA countries are low-Income countries with inadequate access to basic infrastructure including energy. According to IEA 2018, SSA has the least energy access rates globally. Thirteen countries in SSA, do not have up to 25% access, unlike developing Asia where there is only one country (World Bank, 2018). To this end, this empirical investigation focuses on the nexus between energy consumption and export performance of Sub-Sahara African countries. Generally, the study examines the contribution of energy consumption to real export of goods and services and specifically to the export of manufactured goods. This is very crucial as many countries in Sub-Saharan Africa heavily rely on the export of primary products. They trade on a small range of agricultural products and a small numBer of markets for their exports. To achieve this, Dumitrescu and Hurlin (2012) Granger causality procedure and Pooled Mean Group (PMG) were employed to determine the direction of causality and estimate the effect of energy consumption (renewable and non-renewable) on export performance. This estimation approach constrains the long run coefficients to be identical, but allows the short run coefficients and error variances to differ across groups. The estimated model in this study is constructed within the framework of multivariate panel analysis. Specifically, two models are specified with real export of goods and services and export of manufacturing goods as dependents variables. The study established that real export granger causes renewable energy, renewable energy, granger causes manufacturing export and manufacturing export granger causes non-renewable energy. More importantly, the study established the relative importance of renewable energy to export performance in SSA. The study, therefore, recommends that as sub-region is aspiring to move away from resource-based exports to manufacturing exports, it is critical that the countries in the region scale up access to energy and look more in the direction of renewable energy to bring this aspiration to reality. JEL Classifications: Q2: F5:B4: N17 Keywords: Energy: Trade: ARDL: Africa Contact author's email address:

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Gale Document Number: GALE|A641753923