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Disaggregated Energy Consumption and Economic Growth in Ghana

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  • Paul Adjei Kwakwa

    (Department of Business Economics, Presbyterian University College, Ghana)

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.

Suggested Citation

  • Paul Adjei Kwakwa, 2012. "Disaggregated Energy Consumption and Economic Growth in Ghana," International Journal of Energy Economics and Policy, Econjournals, vol. 2(1), pages 34-40.
  • Handle: RePEc:eco:journ2:2012-01-4
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Energy consumption; Economic growth; Cointegration; Granger causality; Ghana;
    All these keywords.

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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