Statistics, accounting and audit ENERGY DYNAMICS AND ECONOMIC PERFORMANCE: A VECM AND COINTEGRATION ANALYSIS

2026

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DOI 10.51579/1563-2415.2026.-1.01
Data confidence 70 medium
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Abstract

The study seeks to highlights and estimates the impact of energy supply on the industrial and agricultural productivity during 1985 – 2024. Various Econometric tests were also applied on the data. This study uses Vector Error Correction Model and Johnson co-integration test to examine the impact of the Regressors i.e. Electricity supply, Renewable energy, Oil Fuel energy, Energy imports, Fossil Fuel energy, Technology and Labor Force on the dependent variables i.e. Agricultural Productivity, Industrial Productivity and Economic Growth of the economy. The results show that there are strong significant and positive influences of all the independent variables on dependent variables in long run, where a short run relationship observe only in the variables i.e. Electricity supply, Renewable energy, Oil Fuel energy and Technology. Furthermore, the evidence from empirical outcome recommends that efforts should be made to increase the local production of energy i.e. fuel, oil, electricity etc. In addition, some alternative sources of energy like solar power, coal and wind power etc. should be encouraged, so is to increase the productivity of agricultural and industrial commodities which will reduce per unit cost. Hence, increase the GDP and the private sector is encouraged to produce and distribute the electricity.