The Energy Demand–Economic Growth Dynamics Theory (ED-EGD Theory): Insights from Ghana (1970 - 2011)

Asuamah Yeboah, Samuel (2025): The Energy Demand–Economic Growth Dynamics Theory (ED-EGD Theory): Insights from Ghana (1970 - 2011).

Abstract

The paper proposes the Energy Demand–Economic Growth Dynamics Theory (ED-EGD Theory) based on empirical findings from Ghana over the period 1970 to 2011. The theory emphasises the dynamic and long-term interactions between energy demand determinants and economic growth in the context of a developing economy. By utilising a comprehensive dataset spanning four decades and applying robust econometric models (ARDL, Johansen cointegration, Gregory and Hansen structural break tests, and ARIMA forecasting), this study offers a historical foundation for understanding energy-growth linkages. The theoretical model derived from these insights remains relevant to contemporary debates on sustainable energy use and economic planning in emerging economies. While the data ends in 2011, the methodological approach and conceptual development presented in this paper provide a valuable framework for ongoing research and policy formulation.

• Item Type: MPRA Paper
• Language: English
• Keywords: Energy demand, economic growth, structural breaks, Ghana, ARDL, Johansen, ARIMA, fiscal policy
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C32 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes ; State Space Models; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O55 - Africa; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy

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