ISSN: 2226-3624
Open access
The study investigated the moderating impact of the 2016 energy crisis on the relationship between oil revenue, non-oil revenue, and economic growth in African oil-producing countries. Focusing on five leading oil-producing nations—Nigeria, Angola, Algeria, Libya, and Egypt—the research analyzed economic data spanning from 1970 to 2023 using Second-Generation Panel econometrics techniques. The research employed a comprehensive methodological approach to examine how the 2016 energy crisis influenced economic dynamics. By implementing a cross-sectional ARDL (Autoregressive Distributed Lag) estimation, the study captured the complex interactions between various economic variables, including oil revenue, non-oil revenue, capital, labor, and GDP. Key findings revealed significant moderating effects of the 2016 energy crisis on revenue streams and economic growth. Non-oil revenue demonstrated a more substantial impact on GDP compared to oil revenue, with coefficients of 0.187 and 0.046 respectively. The crisis interaction terms highlighted the transformation of economic relationships during this period, with both oil and non-oil revenue interactions showing statistically significant effects. The study contributes originality by providing a nuanced understanding of economic resilience in resource-dependent African economies during a critical global energy market disruption. The research offers valuable insights for policymakers, emphasizing the importance of economic diversification and adaptive strategies in mitigating the vulnerabilities associated with oil-dependent economic structures.
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