Modelling the impact of energy use on economic growth: The case of Zimbabwe

Abstract

This study investigated the impact energy use has on Zimbabwe’s economic growth using time series data spanning the period 1980-2011. Pesaran et al’ (2001) bounds testing approach, which does not require pretesting of variables for unit root and its associated error correction model has been employed in data analysis. The findings show that energy use and economic growth are cointegrated and that energy use Granger cause economic growth. Increase in current energy use was found to more than proportionately increase economic growth in Zimbabwe. Policy interventions that promote energy generation and use are recommended to stimulate economic growth