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Exploring the Causal Relationship Between Energy Consumption and Economic Growth: Evidence from Eastern Africa

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Causality established shows that energy consumption drives economic growth, revealing a critical link.
A 1% increase in energy consumption correlates with a 0.1 percentage point rise in GDP, emphasizing economic growth potential.
Using annual panel data and specific causal tests, the study highlights the interconnectedness of energy use and economic indicators.
The findings call for expanding energy infrastructure and stabilizing prices, underscoring the need for a structured approach.

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Analysis reveals unidirectional causality from energy consumption to economic growth in Eastern Africa, indicating regional infrastructure needs.

Mmbaga et al. (2025) studied this question.

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Analysis reveals unidirectional causality from energy consumption to economic growth in Eastern Africa, indicating regional infrastructure needs.