Modelling financial development and electricity consumption nexus for Ghana

Samuel Yeboah

MPRA Paper from University Library of Munich, Germany

Abstract: The paper contributes to the body of knowledge in the area of energy consumption and financial sector development by empirically assessing the long run and short run links and causality between electricity consumption and financial development (proxied by credit to the private sector). The paper is based on quantitative causal study using time series data from 1970-2011. Data were analysed using Autoregressive Distributed Lag Model (ARDL) and Granger Causality Test. There is significant cointegration relationship among the series variables in the model estimated. There is no statistical significant long run and short run relationship between financial development (proxied by credit to the private sector) and electricity consumption. There is bidirectional causality between financial development and electricity consumption. This calls for future studies to contribute to the debate by assessing structural breaks in the series. Policy makers should consider these findings in planning for electricity consumption to avoid unplanned energy shortage which might have adverse effect on the economy.

Keywords: Financial Development; Capital Stock; Electricity Consumption; Bi-directional Causality; Credit to the Private Sector. (search for similar items in EconPapers)
JEL-codes: O11 O16 (search for similar items in EconPapers)
Date: 2016-03-17
New Economics Papers: this item is included in nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/70097/1/MPRA_paper_70097.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:70097

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().