This paper investigates dynamics of the natural gas industry and economic growth in Mozambique for the period of 1999 to 2015. Times series data is collected from Index Mundi, produced by World Bank and it includes export and labor. This study employs Error Correction model. Results report that the natural gas industry, export, and labor are positively cointegrated with economic growth, and they have a long-run relationship. In a short-run term, results revealed that the natural gas industry has a positive effect and it is significant to influence economic growth in Mozambique. However, on the other hand, export and labor contribution to economic growth is small. The study recommends that government should implement a growth policy for the natural gas industry because it would stimulate economic growth. In Mozambique, the natural gas industry will experience foremost dynamics with the production of natural gas in Rovuma Basin scheduled to start by 2022, and it will play a great role to promote the economic growth in the upcoming future.
| Published in | Science Journal of Energy Engineering (Volume 5, Issue 3) |
| DOI | 10.11648/j.sjee.20170503.13 |
| Page(s) | 68-77 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2024. Published by Science Publishing Group |
Natural Gas Industry, Economic Growth, Rovuma Basin Natural Gas, Error Correction Model, Mozambique
| [1] | Akinlo, Anthony Enisan (2012), How important is oil in Nigeria’s Economic growth? Journal of Sustainable Development, Vol. 5, No 4. |
| [2] | Amadeh, H. Morteza, Ghazi & Abbasifar, Z. (2009), Causality relation between energy consumption and economic growth and employment in Iranian economy, Tahgighat-E-Eghtesadi, 44: 1-38. |
| [3] | Anadarko (2014), Environmental Impact Assessment report for the Liquefied Natural Gas project in Cabo Delgado, Vol. 1, Impacto & ERM, South Africa. Retried from: Mzlng.com/content/documents/MZLNG/EIA/volume1/English/Vol_1-_front_pages_NTS_LNG_Final_EIA_sept_2014_Eng.pdf |
| [4] | Anshasy, Amany A. & Katsaiti, Marina-Selini (2013), Natural resource and fiscal performance: does governance matter? Journal of Macroeconomics 37: 285-298. |
| [5] | Apergis, Nicholas & Payne, James (2010), Natural gas consumption and economic growth: a panel investigation of 67 countries, Applied Energy, 87: 2759-2763. |
| [6] | Aqeel, Anjum & Butt, Mohammad (2001), The relationship between Energy consumption and economic growth in Pakistan, Asia-Pacific Development journal, Vol. 8, No. 2. |
| [7] | Arman S. A. & Zare R. (2005) An investigation of Granger – causality relationship between energy consumption & economic growth in Iran (1967-2002), Iranian Economic Research, Vol. 7, No 24: 117-144. |
| [8] | Asghar, Zahid (2008), Energy-GDP relationship: a causal analysis for the five countries of South Asia, Applied Econometrics and International Development, 1: 167-180. |
| [9] | Asgharpour, Hossein, Behboudi D. & Ghazvinian, M. H. (2009), Structural Break: the case of gas consumption and economic growth in Iran, Quarterly Energy Economics Review, Vol. 5, No 19: 105-121. |
| [10] | Asteriou, Dimitrios (2006), Applied Econometrics, A modern Approach using Eviews and Microfit, Palgrave Macmillan. |
| [11] | Biggs, Tyler (2012), Mozambique’s coming natural resource boom: expectations, vulnerabilities, and policies for successful management, CTA/USAID, Maputo. |
| [12] | Bildirici, Melike & Bakirtas, Tahsin (2014), The relationship among oil, natural gas and coal consumption and economic growth in BRICTS (Brazil, Russian, India, China, Turkey and South Africa) countries, Energy 65: 134-144. |
| [13] | Bucuane, Aurelio & Mulder, Peter (2008), Expanding exploitation of natural resources in Mozambique: will it be a blessing or a curse? Reflection on economic questions, IESE, Maputo. |
| [14] | Cabral, Renata Fonseca (2013), estimativa econometrica das elasticidades renda e preço na demanda por gas natural para o sector industrial brasileiro, São Paulo, thesis. Retrieved from: http://www.afd.fr/lang/pt/home/pays/afrique/geo-afr/mozambique/projets-mz/infra/energie2/gaz-naturel-pande-temane_1 |
| [15] | Campos, Adriana Fiorotti, Da Silva, Neilton Fidelis & Perreira, Marcio Giannini (2016), A review of Brasilian natural gas industry: challenges and strategies, Renewable and sustainable Energy reviews. |
| [16] | Cheng, Benjamin & Lai, Tin Wei (1997), An investigation of co-integration and causality between energy consumption and economic activity in Taiwan, Journal of Energy Economics 19: 435-444. |
| [17] | Collier, Paul (2007), The bottom billion, why the poorest countries are failing and what can be done about it, Oxford University Press, New York. |
| [18] | Daniele, Vittorio (2011), Natural resources and economic growth: a curse or a blessing? Rivista Italiana degli Economist, Vol. 16, No 3, pp 507-528. |
| [19] | Demko, Iryna (2010), Nexus of natural gas consumption and regional economic growth in Ukraine policy implication, Kyiv School of Economics, Thesis submitted for the degree of MA in Economics. Retrieved from: www.kse.org.ua/uploads/thesis_demko_final%20version.pdf |
| [20] | Destek, Mehmet A. (2016), Natural gas consumption and economic growth: panel evidence from OECD countries, Energy 114: 1007-1015. |
| [21] | Economist Intelligence Unit. Retrieved from: www.EIU/mozambiqueeconomicandpoliticaloutlook/121209 |
| [22] | Ekpulu G. A., Donwa, P. A. & Mgbame, C. O (2015), Economic growth: oil and gas contributions, Sci-Afric Research Journal of Accounting and Monetary Policy, Vol. 1 (2), pp 102-108. |
| [23] | Ewing, Bradley T., Sari, Ramazan & Soytas, Ugur (2007), Disaggregate energy consumption and industrial output in the United States, Energy Policy, 35: 1274-1281. |
| [24] | Farhani, Sahbi, Shahbaz, Muhammad, Arouri, Mohamed, & Teulon, Frédéric (2014), The role of natural gas consumption and trade in Tunisia’s output, Energy Policy, 66: 677-684. |
| [25] | Frühauf, Anne (2014), Mozambique’s LNG revolution: a political risk outlook for the Rovuma LNG ventures, The Oxford Institute for Energy studies, Oxford University. |
| [26] | Furuoka, Fumitaka (2016), Natural gas consumption and economic development in China and Japan: an empirical examination of the Asian context, Renewable and Sustainable Energy Reviews 56: 100-115. |
| [27] | Gqada, Ichumile (2013), a boom for whom? Mozambique’s Natural Gas and the New Development Opportunity, South African Institute of International Affairs. |
| [28] | Heidari, Hassan, Katircioglu, Turan Salih & Saeidpour, Lesyan (2013), Natural gas consumption and economic growth: are we ready to natural gas price liberalization in Iran? Energy Policy, 63: 638-645. |
| [29] | Hofmann, Katharina & Martins, Adrian de Souza (2012), Descoberta de Recursos Naturais em Moçambique: Riquesa para poucos ou um meio de sair da pobreza? Friedrich – Ebert – Stiftung Mozambique. Retrieved from: http:/cesab.edu.mz/wp-content/uploads-Cesab.pdf. |
| [30] | Hu, Jin-Li, & Lin, Cheng-Hsun (2008), Disaggregated energy consumption and GDP in Taiwan: a threshold cointegration analysis, Energy Economics, 30: 2342-2358. |
| [31] | Index Mundi, 2017; www.indexmundi.com |
| [32] | Kemp, Rene & Parto, Saeed (1995), Governance for sustainable development: moving from theory to practice, Int. J. Sustainable Development, Vol. 8, Nos 1/2, MERIT, Maastricht University. |
| [33] | Khan, Muhammad Arshad & Ahmed, Usman (2009), Energy demand in Pakistan: a disaggregate analysis, the Pakistan Development Review, 4: 1-27. |
| [34] | Kum, Hakan, Ocal, Oguz & Aslan, Alper (2012), The relationship among natural gas energy consumption, capital and economic growth: a bootstrap-corrected causality test from G-7 countries, Renewable and Sustainable Energy Reviews, 16: 2361-2365. |
| [35] | Lee, Chien-Chiang & Chang, Chun-Ping (2005), Structural breaks, energy consumption and economic growth revisited: Evidence from Taiwan, Energy Economics, 27: 857-872. |
| [36] | Lim H. J., & Yoo, S-H (2012) Natural gas consumption and Economic growth in Korea: a causality analysis, Energy sources, Part B: Economics, Planning, and Policy, 7: 2, 169-176. |
| [37] | Lotfalipour, Mohammad Reza, Falahi, Mohammad Ali & Ashena Malihe (2010), Economic growth, CO2 emissions, and fossil fuels consumption in Iran, Energy, 35: 5115-5120. |
| [38] | Melina, Giovanni & Xiong, Yi (2013), Natural gas, public investment and Debt sustainability in Mozambique, IMF working paper, New York. |
| [39] | Ministry of Energy and Mineral Resources of Mozambique, 2015; www.mireme.gov.mz |
| [40] | Mithá, Omar (2015), Desenvolvimento da Indústria de Hidrocarbonetos em Moçambique: Perspectivas de impacto, Conferência sobre ganhos do Estado na Exploração de Hidrocarbonetos, Maputo. |
| [41] | Moshi, Humphrey P. B. (2013), Opportunities and challenges for the extraction of natural gas in Tanzania: the imperative of adequate preparedness, Economic, and Social Research Foundation. |
| [42] | Mozambique National Hydrocarbon Company; 2016, www.enh.gov.mz |
| [43] | Mozambique National Petroleum Institute, 2014; www.inp.gov.mz |
| [44] | Namuyondo, Esther (2014), Sustainability and Oil Exploration in Uganda - the case of Uganda's Albertine Region, Master Thesis, Aalborg University. |
| [45] | Oduyoye, A. O., Aderinto, E. R. & Ejumedia P. E (2013), Energy consumption and economic growth revisited: empirical evidence for Nigeria, 6th NAEE/IAEE International Conference, April 22-23, Lagos, Nigeria. Retrieved from: http://www.slideserve.com/maxima/energy-consumption-and-economic-growth-revisited-empirical-evidence-for-nigeria |
| [46] | Onakoya, Adegbemi Babatunde, Onakoya, Adegbemi Olatunde, Jimi-Salami, Olalekan Adejuwon & Odelairo, Babatunde Omoniyi (2013), Energy consumption and Nigerian economic growth: an empirical analysis, European Scientific journal, Vol. 9, No 4. |
| [47] | Payne, J. E. (2011) US disaggregate fossil fuel consumption and real GDP: an empirical note, Energy Sources, Part B: Economics, Planning and Policy; 6: 63-68. |
| [48] | Pirlogea, Corina, & Cicea, Claudiu (2012), Econometric perspective of the energy consumption and economic growth in European Union, Renewable and Sustainable Reviews, 16: 5718-5726. |
| [49] | Rafindadi, Abdulkadir Abdulrashid, & Ozturk, Ilhan (2015), Natural gas consumption and economic growth nexus: is the 10th Malaysian Plan attainable within the limits of its resource? Renewable and Sustainable Energy Reviews; 49: 1221-1232. |
| [50] | Reynolds, Douglas B. & Kolodziej, Marek (2008), Former Soviet Union oil production and GDP decline: Granger causality and the multi-cycle Hubbert curve, Energy Economics, 30: 271-289. |
| [51] | Robin Best (2008), An introduction to Error Correction Model, Oxford Spring school of quantitative methods in social research. Retrieved from: https://wenku.baidu.com/view/4c5edece1eb91a37f1115cba.html |
| [52] | Rolo, Jose Manuel, & Tschanze, Adelia Fereira (2008), Moçambique na geoeconomia do gas natural. Retrieved from: http://www.scielo.nec.pt/pdf/egg/v13n1/v13n1a05.pdf |
| [53] | Rosser, Andrew (2006), The political economy of the resource curse: a literature survey. IDS Working Paper 268. Retrieved from: www.ids.uk/ids/bookshop |
| [54] | Saidi, Kais &Hammani, Sami (2014), Energy consumption and economic growth nexus: empirical evidence from Tunisia, American Journal of Energy Research, Vol. 2, No 4, 81-89. |
| [55] | Sari, Ramazan, Ewing, Bradley T. & Soytas, Ugur (2008), The relationship between disaggregate energy consumption and industrial production in the United States: an ARDL approach, Energy Economics, 30: 2302-2313. |
| [56] | Sasol Annual Review, 2014. Retrieved from: sasol.com/extras/annual-integrated-report. |
| [57] | Selemane, Tomás (2009), Alguns desafios da indústria extractiva em Moçambique, CIP, Maputo. |
| [58] | Shahbaz, Muhammad, Arouri, Mohamed, & Teulon, Frédéric (2014), Short and long-run relationships between natural gas consumption and economic growth: evidence from Pakistan, Economic Modelling, 41: 219-226. |
| [59] | Shahbaz, Muhammad, Farhani, Sahbi & Rahman, Mohammad Mafizur (2013b), Natural gas consumption and Economic growth nexus: the role of exports, capital, and labor in France, Munich personal Repec archive. |
| [60] | Shahbaz, Muhammad, Lean, Hooi Hooi & Farooq, Abdul (2013a), Natural gas consumption and economic growth in Pakistan, Renewable and Sustainable Energy Reviews, 18: 87-94. |
| [61] | Siddiqui, Rehana (2004), Energy and Economic Growth in Pakistan, the Pakistan Development Review, 43, 2: 175-200. |
| [62] | Silva, Teresa, (2013), Exploração de Recursos Energéticos e Ameaças Futuras, Cesab: Bragança. Retrieved from: http:/cesab.edu.mz/wp-content/uploads-Cesab.pdf |
| [63] | Solarin, Sakiru & Ozturk, Ilhan (2016), The relationship between natural gas consumption and economic growth in OPEC members, Renewable and Sustainable Energy Reviews, 58: 1348-1356. |
| [64] | Solarin, Sakiru Adebola & Shahbaz, Muhammad (2015), Natural gas consumption and economic growth: the role of foreign direct investment, capital formation and trade openness in Malaysia, Renewable and Sustainable Energy Reviews, 42: 835-845. |
| [65] | Sousa, Francisco Jose Rocha de (2010), O sector do gás natural no mundo, Nota técnica. Retrieved from: http://www2.camara.leg.br/documentos-e-pesquisa/publicacoes/estnottec/areas-da-conte/tema16/2009_11105.pdf |
| [66] | Susic, Vukasin & Zivkovic, Jelena (2012), Energy resources and global geopolitical processes, Factas Universitatis, Economics and Organization, Vol. 9, No 1, 39-52. |
| [67] | The Economist (2012), an unconventional bonanza, Special report on natural gas. |
| [68] | World Bank, 2017. Retrieved from: www.worldbank.org/en/country/mozambique/overview |
| [69] | Yang, Hao-Yen (2000), A note on the causal relationship between energy and GDP in Taiwan, Journal of Energy Economics 22: 309-317. |
| [70] | Zamani, Mehrzad (2007), Energy consumption and economic activities in Iran, Energy Economics, 29: 1135-1140. |
APA Style
Abdul Gafur Nazordine Mahomed Bay, Liang Hong. (2017). Dynamics of the Natural Gas Industry and Economic Growth in Mozambique. Science Journal of Energy Engineering, 5(3), 68-77. https://doi.org/10.11648/j.sjee.20170503.13
ACS Style
Abdul Gafur Nazordine Mahomed Bay; Liang Hong. Dynamics of the Natural Gas Industry and Economic Growth in Mozambique. Sci. J. Energy Eng. 2017, 5(3), 68-77. doi: 10.11648/j.sjee.20170503.13
AMA Style
Abdul Gafur Nazordine Mahomed Bay, Liang Hong. Dynamics of the Natural Gas Industry and Economic Growth in Mozambique. Sci J Energy Eng. 2017;5(3):68-77. doi: 10.11648/j.sjee.20170503.13
Share This Article
Twitter
Linked In
Facebook
Copy
Download@article{10.11648/j.sjee.20170503.13,
author = {Abdul Gafur Nazordine Mahomed Bay and Liang Hong},
title = {Dynamics of the Natural Gas Industry and Economic Growth in Mozambique},
journal = {Science Journal of Energy Engineering},
volume = {5},
number = {3},
pages = {68-77},
doi = {10.11648/j.sjee.20170503.13},
url = {https://doi.org/10.11648/j.sjee.20170503.13},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjee.20170503.13},
abstract = {This paper investigates dynamics of the natural gas industry and economic growth in Mozambique for the period of 1999 to 2015. Times series data is collected from Index Mundi, produced by World Bank and it includes export and labor. This study employs Error Correction model. Results report that the natural gas industry, export, and labor are positively cointegrated with economic growth, and they have a long-run relationship. In a short-run term, results revealed that the natural gas industry has a positive effect and it is significant to influence economic growth in Mozambique. However, on the other hand, export and labor contribution to economic growth is small. The study recommends that government should implement a growth policy for the natural gas industry because it would stimulate economic growth. In Mozambique, the natural gas industry will experience foremost dynamics with the production of natural gas in Rovuma Basin scheduled to start by 2022, and it will play a great role to promote the economic growth in the upcoming future.},
year = {2017}
}
TY - JOUR T1 - Dynamics of the Natural Gas Industry and Economic Growth in Mozambique AU - Abdul Gafur Nazordine Mahomed Bay AU - Liang Hong Y1 - 2017/10/23 PY - 2017 N1 - https://doi.org/10.11648/j.sjee.20170503.13 DO - 10.11648/j.sjee.20170503.13 T2 - Science Journal of Energy Engineering JF - Science Journal of Energy Engineering JO - Science Journal of Energy Engineering SP - 68 EP - 77 PB - Science Publishing Group SN - 2376-8126 UR - https://doi.org/10.11648/j.sjee.20170503.13 AB - This paper investigates dynamics of the natural gas industry and economic growth in Mozambique for the period of 1999 to 2015. Times series data is collected from Index Mundi, produced by World Bank and it includes export and labor. This study employs Error Correction model. Results report that the natural gas industry, export, and labor are positively cointegrated with economic growth, and they have a long-run relationship. In a short-run term, results revealed that the natural gas industry has a positive effect and it is significant to influence economic growth in Mozambique. However, on the other hand, export and labor contribution to economic growth is small. The study recommends that government should implement a growth policy for the natural gas industry because it would stimulate economic growth. In Mozambique, the natural gas industry will experience foremost dynamics with the production of natural gas in Rovuma Basin scheduled to start by 2022, and it will play a great role to promote the economic growth in the upcoming future. VL - 5 IS - 3 ER -
Information
Email: