Fossil Fuel Energy Consumption, Inflation and Economic Growth in Selected African Oil Producing Countries
Abstract
The importance of oil in production has been the reason for continuous increase in fossil fuel energy consumption, which further had implications on inflation and economic growth. This study investigated the impact of fossil fuel energy consumption on inflation and economic growth in the African oil producing countries which include Nigeria, Libya, Angola, and Algeria where data was sourced from the World Bank for the period 2011 to 2021. The generalized method of moment (GMM) was applied, and it was found that fossil fuel energy consumption had significant positive impact on inflation; it was also found from the analysis of GMM that fossil fuel energy consumption had significant positive impact on economic growth in African oil producing countries. The study recommended diversification of the economy by encouraging and increasing local manufacturing, and sponsoring more research on developing renewable energy since fossil fuel energy is not renewable and is exhaustible.
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