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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

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.

Suggested Citation

  • L.Oladele ODERINDE & Wakeel.A. ISOLA, 2011. "Output, Electricity Consumption And Exports In Nigeria And Ghana: Evidence From Multivariate Causality Test," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 11(2).
    • Handle: RePEc:eaa:aeinde:v:11:y:2011:i:2_11
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    References listed on IDEAS

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    5. Stern, David I., 2010. "The Role of Energy in Economic Growth," Working Papers 249380, Australian National University, Centre for Climate Economics & Policy.
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    More about this item

    Keywords

    output dynamics; electricity consumption; Granger causality; Nigeria and Ghana;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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