Rashed, Ahmed and Yong, Chen-Chen and Soon, Siew-Voon (2022) The nexus among foreign direct investment in renewable electricity industry, renewable electricity production, and economic growth in Africa. Cogent Economics and Finance, 10 (1). ISSN 2332-2039, DOI https://doi.org/10.1080/23322039.2021.2001141.
Full text not available from this repository.Abstract
Africa is still struggling to mitigate its electricity insecurity issues. This situation renders foreign direct investment in the renewable electricity industry (FDIREI) and renewable electricity production (REP) to become simultaneously important to Africa. Using a novel dataset of FDIREI, this paper examines the existence and nature of cointegration and causality nexuses among FDIREI, REP, and economic growth (GDP) in 32 African countries over 2003–2019. For methodological robustness purposes; GDP is added. By applying the panel vector autoregression model based-Granger causality test and a static panel data model, which are followed by robustness tests, more informative results are reported. Importantly, we find evidence of the growth hypothesis between REP and GDP, as a unidirectional Granger causality is seen from REP to GDP. Further, the neutrality hypothesis is confirmed among the remaining variables. This left us with the importance of REP in revitalizing African countries’ economic growth. All facets of REP thus should be enhanced. © 2021 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license.
| Item Type: | Article |
|---|---|
| Funders: | None |
| Uncontrolled Keywords: | foreign direct investment (FDI); Renewable energy; Renewable electricity; Cointegration; Causality; Africa |
| Subjects: | H Social Sciences > HB Economic Theory |
| Divisions: | Faculty of Business and Economics |
| Depositing User: | Ms. Juhaida Abd Rahim |
| Date Deposited: | 11 Oct 2023 02:49 |
| Last Modified: | 11 Oct 2023 02:49 |
| URI: | http://eprints.um.edu.my/id/eprint/43150 |
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