The role of renewable energy in supporting economic growth in North Africa from 2000 to 2023 | ||
| المجلة العلمية للدراسات والبحوث المالية والتجارية | ||
| Article 22, Volume 6, Issue 1, January 2025, Pages 687-712 PDF (1.16 M) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/cfdj.2024.319853.2045 | ||
| Authors | ||
| ayman salah eldin ibrahim* 1; waleid Ibrahim2 | ||
| 1iaems | ||
| 2مجلس الوزراء | ||
| Abstract | ||
| This study examines the role of renewable energy in supporting economic growth in North Africa, focusing on Egypt, Libya, Tunisia, Algeria, and Morocco. Using panel data from 2000 to 2023, we employ a Generalized Method of Moments (GMM) approach and Granger causality tests to analyze the relationship between renewable energy adoption and economic growth. Our findings reveal a significant positive impact of renewable energy on economic growth in the region, with a 1% increase in renewable energy share associated with a 0.1523% increase in economic growth. Granger causality tests indicate a unidirectional causality from renewable energy to economic growth, supporting the "growth hypothesis" in the energy-growth nexus literature. The study also considers the effects of foreign direct investment, human capital, trade openness, inflation, and governance on economic growth. Our results suggest that policies promoting renewable energy adoption could yield dual benefits of fostering sustainable development and stimulating economic growth in North African countries. These findings have important implications for policymakers in the region, highlighting the potential of renewable energy as a catalyst for economic development. | ||
| Keywords | ||
| Renewable Energy; Economic Growth; North Africa; GMM; Granger Causality | ||
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