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Do Foreign Direct Investment and Trade lead to Lower Energy Intensity? Evidence from Selected African Countries

Year 2016, Volume: 6 Issue: 1, 1 - 5, 01.03.2016

Yaya Keho

Abstract

The aim of this study is to examine the impact of foreign direct investment (FDI) and trade on energy intensity in a sample of six Sub-Saharan countries. It applies the bounds testing approach to cointegration and Granger causality analysis to annual data covering the time period from 1970 to 2011. The results indicate evidence for energy-reducing effect of FDI in Benin and Nigeria, while in Cote d’Ivoire and Togo, energy efficiency declines as FDI increases. The results also indicate that energy intensity is negatively affected by imports in Cameroon, Cote d’Ivoire and Togo, suggesting that trade improves energy efficiency. Results of Granger causality suggest that in the short-run, energy intensity is caused by FDI in Cote d’Ivoire and Nigeria, and by imports in Cameroon and Nigeria.

Keywords

Energy Intensity Foreign Direct Investment Trade

Year 2016, Volume: 6 Issue: 1, 1 - 5, 01.03.2016

Yaya Keho

Abstract

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Details

Other ID JA57FC37YB
Journal Section Research Article
Authors

Yaya Keho This is me

Publication Date March 1, 2016
Published in Issue Year 2016 Volume: 6 Issue: 1

Cite

APA Keho, Y. (2016). Do Foreign Direct Investment and Trade lead to Lower Energy Intensity? Evidence from Selected African Countries. International Journal of Energy Economics and Policy, 6(1), 1-5.
AMA Keho Y. Do Foreign Direct Investment and Trade lead to Lower Energy Intensity? Evidence from Selected African Countries. IJEEP. March 2016;6(1):1-5.
Chicago Keho, Yaya. “Do Foreign Direct Investment and Trade Lead to Lower Energy Intensity? Evidence from Selected African Countries”. International Journal of Energy Economics and Policy 6, no. 1 (March 2016): 1-5.
EndNote Keho Y (March 1, 2016) Do Foreign Direct Investment and Trade lead to Lower Energy Intensity? Evidence from Selected African Countries. International Journal of Energy Economics and Policy 6 1 1–5.
IEEE Y. Keho, “Do Foreign Direct Investment and Trade lead to Lower Energy Intensity? Evidence from Selected African Countries”, IJEEP, vol. 6, no. 1, pp. 1–5, 2016.
ISNAD Keho, Yaya. “Do Foreign Direct Investment and Trade Lead to Lower Energy Intensity? Evidence from Selected African Countries”. International Journal of Energy Economics and Policy 6/1 (March 2016), 1-5.
JAMA Keho Y. Do Foreign Direct Investment and Trade lead to Lower Energy Intensity? Evidence from Selected African Countries. IJEEP. 2016;6:1–5.
MLA Keho, Yaya. “Do Foreign Direct Investment and Trade Lead to Lower Energy Intensity? Evidence from Selected African Countries”. International Journal of Energy Economics and Policy, vol. 6, no. 1, 2016, pp. 1-5.
Vancouver Keho Y. Do Foreign Direct Investment and Trade lead to Lower Energy Intensity? Evidence from Selected African Countries. IJEEP. 2016;6(1):1-5.