Energy Consumption and Economic Growth Nexus in Mozambique: 1975-2016

Abdul Gafur Nazordine Mahomed Bay^1,

¹Centre for Research in Health, Science, and Technology of Mozambique, Street 1394, FACIM 322, Maputo, Mozambique

Cite this paper:
Abdul Gafur Nazordine Mahomed Bay. Energy Consumption and Economic Growth Nexus in Mozambique: 1975-2016. American Journal of Energy Research. 2018; 6(1):19-22. doi: 10.12691/ajer-6-1-3

Abstract

This study explores the relationship between energy consumption and economic growth in Mozambique for 1975-2016 period, using Vector error correction model and Granger causality test. The VECM result suggests the existence of unidirectional long-run relationship running from EC to GDP. Granger causality test proposes that energy consumption Granger causes economic growth. Therefore, in Mozambique is indispensable an energy consumption development policy to stimulate economic growth. Mozambique has plentiful energy resources that would boost the development of energy sector and supply the emergent industry without any energy shortage.

Keywords:
energy consumption economic growth VECM Mozambique

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