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Output, Electricity Consumption And Exports In Nigeria And Ghana: Evidence From Multivariate Causality Test

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  • L.Oladele ODERINDE
  • Wakeel.A. ISOLA
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    Abstract

    This paper investigated the causality relationship between electricity consumption and output performance in Nigeria and Ghana. We used annual data series from 1970 to 2006 to examine the causal relationship between output per worker, electricity consumption per worker, primary exports per worker, and capital per worker in a multivariate model for Nigeria and Ghana. Bounds testing approach for cointegration relationship and the Granger causality test due to Toda and Yamamoto (1995) and Dolado and Lutkepohl (1996) were employed. The results indicate no causality in Nigeria but there is causality only from output to electricity consumption in Ghana.

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    Bibliographic Info

    Article provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.

    Volume (Year): 11 (2011)
    Issue (Month): 2 ()
    Pages:

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    Handle: RePEc:eaa:aeinde:v:11:y:2011:i:2_11

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    Related research

    Keywords: output dynamics; electricity consumption; Granger causality; Nigeria and Ghana;

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    1. David I. Stern, 1998. "A multivariate cointegration analysis of the role of energy in the U.S. macroeconomy," Working Papers in Ecological Economics 9803, Australian National University, Centre for Resource and Environmental Studies, Ecological Economics Program.
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