Investigating the Finance-Energy-Growth Trilogy in Sub-Saharan Africa: Evidence From the NARDL Framework

This paper analyzes the nexus between energy consumption, financial development, and economic growth in twenty-one (21) sub-Saharan African (SSA) nations by using nonlinear autoregressive distributed lag (NARDL) framework from 1990Q1 to 2014Q4. First, study reveals that consumption development have asymmetrical impacts on most countries short long term. Second, positive shocks favor only a few compared negative term, whereas they mixed effects Third, we found adverse boost several unlike shocks, but scenario has reversed We also gross fixed capital formation labor force remain key factors promoting many SSA countries, contrast of trade openness over time. Accordingly, our recommends implementing energy-saving policies specific stimulate sustainable development. Policymakers must embrace an effective credit allocation private sector supporting productive investments. Governments should optimize domestic investments physical capital, upgrade force, implement efficient strategies international trade. These policy recommendations need be implemented according unique socio-economic characteristics each country.