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An econometric modelling of financial development-aggregate energy consumption nexus for Ghana

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  • Yeboah Asuamah, Samuel

Abstract

The study modelled the long run and short run link between financial development and aggregate energy consumption in Ghana for the period 1970 to 2011 using Autoregressive Distributed Lad Model (ARDL). The results produced significant evidence of cointegration between the variables. The results seem to suggest that financial development is a key explanatory variable in aggregate energy consumption. Financial development is recommended as a policy tool to manage energy consumption. Causality issues as well as the effect of structural breaks in modelling should be the subject of future research.

Suggested Citation

  • Yeboah Asuamah, Samuel, 2017. "An econometric modelling of financial development-aggregate energy consumption nexus for Ghana," MPRA Paper 76199, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:76199
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    File URL: https://mpra.ub.uni-muenchen.de/76199/1/MPRA_paper_76199.pdf
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    References listed on IDEAS

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    Cited by:

    1. Yeboah Asuamah, Samuel, 2017. "A Bivariate Modelling of the Electricity Consumption-Financial Development Nexus for Ghana," MPRA Paper 76390, University Library of Munich, Germany.

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    More about this item

    Keywords

    Financial development; Aggregate energy consumption; Long run;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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