CHAPTER THREE THEORETICAL FRAMEWORK / RESEARCH METHODOLOGY3.1. INTRODUCTION.This chapter focuses on covering the theoretical framework of models, data sources, introduction of models, model specification, estimation techniques, decision making criteria. It also reports on the research method used to carry out the study on the impact of electricity consumption on economic growth.3.2. THEORETICAL FRAMEWORK Before the growth theory proposed by Romar, other growth theories flourished. The Solow growth theory was one such theory then in vogue. Solow's growth theory was also known as exogenous theory because it argued that technology is an exogenous factor that determines economic growth. However, what is very important about the Solow model is the fact that it explains long-term growth per capita by the growth rate. of technological progress, which comes from outside the model. Endogenous growth theory or new growth theory was developed in response to the flaws in neoclassical (exogenous) growth theory. Romar's theory of endogenous growth was first presented in 1986 in which he considers knowledge as an input into the production function. The theory aimed to explain long-term growth when productivity growth or technical progress is endogenous. The main assumptions of the theory are: 1. Increasing returns to scale due to positive externalities2. Human capital (knowledge, skills and training of individuals) and the production of new technologies are essential for long-term growth.3. Private investment in research and development is the most important source of technological progress4. Knowledge or technical advances are not competing goods. In Romar's new theory of growth, the middle of paper is saved in nature. This method is chosen because of the nature of the study and the objective it sets. The data obtained and used for estimation would be presented in tabular form to ensure a clear view of the variables. The data would also be analyzed by following the trend of the growth pattern of different variables.ReferencesJournal of Economics and Business, “Does Energy Consumption Contribute To Economic Performance? Empirical Evidence from Nigeria”.Gbadebo, OlusegunOdularu Regional Politicals & Markets Nsf, FaraChineduOkonkwo Central Bank Of Nigeria.Journal of Business Management and Applied Economics Electricity Consumption and Economic Growth in Nigeria Authors: Adeyemi A. Ogundipe, Department of Economic and Development Studies , Covenant University, Ota, AyomideApata, Department of Economics, University of Dundee, Dundee, United Kingdom.