Issues in Business Management and Economics
Vol.2 (11), pp. 193-200, November 2014
Article ID 14/BM124/08/ pages
Copyright © 2014 Author(s) retain the copyright of this article. Author(s) agree that this article remain permanently open access under the terms of the Creative Commons Attribution License 4.0 International License
Original Research Article
Co-integration and causality between GDP, employment and energy consumption: Empirical evidence on the WAEMU countries
Boukary Ouédraogo1* and Mamoudou Hassane2
1CEDRES, Université Ouaga 2, Burkina Faso.
2Department of Economics, University Abdou Moumouni of Niamey, Niger.
*Corresponding Author E-mail: boukary.ouedraogo(at)univ-ouaga.bf
This article uses data from the West African Economic and Monetary Unions (WAEMU) zone for the period 1979-2010 to examine the causal relationships between GDP per employee and energy consumption on one hand, and the relationship between employment and energy on the other hand. The importance of energy consumption in the WAEMU zone is derived from the inadequacy of energetical resources compared with needs of economic activities. Therefore, for the robustness of the empirical results, we used Phillips-Perron tests to determine the level of integration of variables. The results drawn from these tests led to the conclusion that the series are stationary with the exception of GDP per employment which is integrated in order 1. The Hsiao’s Granger causality method show the existence of a one-way relationship between GDP per employee on one hand, and between energy consumption and the variables employment and consumption of energy on the other hand. This is a good reference for policy makers to well define the energy strategies of the WAEMU zone.
JEL Classification: C13, C50, C52, E23, E24, Q41,
Key words: Energy, GDP, Employment, Causality, Co-integration, WAEMU