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Bivariate modelling of the financial development-fossil fuel consumption nexus in Ghana

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  • Yeboah Asuamah, Samuel

Abstract

The present paper modelled the relationship between financial developments and fossil fuel energy consumption in Ghana for the period 1970-2011 by applying Autoregressive Distributed Lad Model (ARDL). The findings of the paper on the cointegration test indicate significant evidence of cointegration between fossil fuel consumption and financial development. The findings seem to suggest that financial development is an explanatory variable in fossil fuel consumption management in achieving sustainable oil energy consumption for economic growth. The direction of causality between the two variables should be examined in future studies as well as multivariate analysis and structural breaks.

Suggested Citation

  • Yeboah Asuamah, Samuel, 2017. "Bivariate modelling of the financial development-fossil fuel consumption nexus in Ghana," MPRA Paper 76504, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:76504
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    File URL: https://mpra.ub.uni-muenchen.de/76504/1/MPRA_paper_76504.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Fossil fuel consumption; financial development; long run; short run;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • P34 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Finance
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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