Asymmetric cointegration and causality between natural gas consumption and economic growth in Nigeria

Titolo Rivista ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT
Autori/Curatori Mukhtar Danladi Galadima, Abubakar Wambai Aminu
Anno di pubblicazione 2018 Fascicolo 2017/3
Lingua Italiano Numero pagine 13 P. 59-71 Dimensione file 240 KB
DOI 10.3280/EFE2017-003004
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This paper investigates asymmetric cointegration, asymmetric adjustment, and causality between natural gas consumption and economic growth in Nigeria using the momentum threshold autoregressive (M-TAR) model and the Granger-causality test in a momentum threshold error correction model (M-TECM). The results revealed evidence of asymmetric cointegration and asymmetric adjustment which suggests that the negative discrepancies from the equilibrium error adjust more rapidly than the positive discrepancies and that there is bidirectional causality between the two variables. The implication of the results is that a shock that decreases the impact of natural gas consumption on economic growth adjusts more rapidly than a shock that increases it and that a consistent natural gas supply increases growth and similarly a rise in growth induces an increase in natural gas consumption. Therefore, policymakers in Nigeria need to confine more attention to the shocks stemming from the decrease in natural gas consumption and the country should adopt energy exploration policies

Parole chiave:Asymmetric cointegration, asymmetric adjustment, causality, natural gas consumption, economic growth.

Jel codes:C32, Q43, F15

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  • Short-term dynamics and long-term relationship between natural gas consumption and economic growth in Nigeria: an ARDL approach with breaks Mukhtar Danladi Galadima, Abubakar Wambai Aminu, Ibrahim Muhammad Adam, Ibrahim Mohammed Adamu, Hassan Hassan Suleiman, in Environmental Science and Pollution Research /2022 pp.52818
    DOI: 10.1007/s11356-022-19457-8

Mukhtar Danladi Galadima, Abubakar Wambai Aminu, Asymmetric cointegration and causality between natural gas consumption and economic growth in Nigeria in "ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT" 3/2017, pp 59-71, DOI: 10.3280/EFE2017-003004