Jurnal Ekonomi, Manajemen, Bisnis dan Akuntansi Review
Vol. 5 No. 2 (2025): December

Determinants of Economic Growth in Selected African Oil Producing Countries

Farag Gaballa (University Sultan Zainal Abidin)
Nazatul Haron (University Sultan Zainal Abidin)



Article Info

Publish Date
08 Oct 2025

Abstract

This study aims to examine the impact of oil revenue, non-oil revenue, and oil prices on economic growth in five African oil-producing economies, Nigeria, Angola, Algeria, Libya, and Egypt, over the period 1970 to 2020. The study applied second-generation econometric techniques, including the Cross-sectional Im–Pesaran and Cross-sectional Augmented Dickey-Fuller tests, Westerlund panel cointegration, the CS-ARDL model, and Dumitrescu and Hurlin heterogeneous panel Granger causality. The results reveal cross-sectional dependence and slope homogeneity among the countries. Panel unit root tests indicate that all variables are stationary at first difference, while cointegration tests confirm a long-run equilibrium relationship. Empirical evidence shows that oil revenue, non-oil revenue, and oil prices significantly influence economic growth, with bidirectional causality between these variables and growth. These findings highlight the need for economic diversification by expanding non-oil revenue sources and implementing supportive policies to sustain long-term growth. The study recommends that policymakers prioritize investment in non-oil sectors and strengthen domestic participation in oil production to foster inclusive and sustainable development.

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Journal Info

Abbrev

JER

Publisher

Subject

Economics, Econometrics & Finance Other

Description

Jurnal Ekonomi, Manajemen, Bisnis dan Akuntansi Review ISSN 2798-2742 is a peer-reviewed journal. Jurnal Ekonomi, Manajemen, Bisnis dan Akuntansi Review invites academics and researchers who do original research in the fields of economics, management, Business and accounting, including but not ...