Disaggregated Energy Consumption and Economic Growth in Ghana

Paul Kwakwa

International Journal of Energy Economics and Policy, 2012, vol. 2, issue 1, 34-40

Abstract: This study has examined the causality between disaggregated energy consumption (electricity and fossil consumption) and overall growth, agricultural and manufacturing growth in Ghana s economy over the period 1971-2007. By employing the Augmented Dickey Fuller test all variables were found to be integrated of the order one and the Johansen test showed the presence of cointegration between the variables. The granger causality test for the study indicated a unidirectional causality from overall growth to electricity and fossil consumption; a unidirectional causality from agriculture to electricity consumption both in the short and long run; and a feedback relationship between manufacturing and electricity consumption. Energy seem not be an essential factor of production in the agricultural sector but important in the manufacturing sector therefore, it is recommended that efforts be geared towards ensuring a high supply of energy to the manufacturing sector in order to keep up its contribution to the economy.

Keywords: Energy consumption; Economic growth; Cointegration; Granger causality; Ghana (search for similar items in EconPapers)
JEL-codes: C3 O4 Q43 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (33)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2012-01-4

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