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An econometric investigation of the effect of financial development on aggregate, and disaggregate energy consumption: time series assessment for Ghana

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  • Yeboah Asuamah, Samuel

Abstract

The paper has examined both long run and short run link between financial development and energy consumption in Ghana for 1970-2011 period using Autoregressive Distributed Lad Model. The ARDL test results produced significant evidence of cointegration among the variables. There are statistical significant long run and short run effects of financial development on energy consumption. The results seem to suggest that financial development is a key explanatory variable in energy consumption and as such, financial development could be relied on as a policy tool to manage energy consumption. Future research should account for the effect of structural effect and the issues of causality.

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  • Yeboah Asuamah, Samuel, 2015. "An econometric investigation of the effect of financial development on aggregate, and disaggregate energy consumption: time series assessment for Ghana," MPRA Paper 67684, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:67684
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    References listed on IDEAS

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    Cited by:

    1. Yeboah Asuamah, Samuel, 2016. "Modelling financial development and electricity consumption nexus for Ghana," MPRA Paper 70097, University Library of Munich, Germany.

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    More about this item

    Keywords

    Financial Development; Fossil fuel consumption; Electricity consumption; 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
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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