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

Yeboah Asuamah, Samuel (2017): Bivariate modelling of the financial development-fossil fuel consumption nexus in Ghana.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Fossil fuel consumption, financial development; long run; short run
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance; P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P28 - Natural Resources ; Energy ; Environment; P - Economic Systems > P3 - Socialist Institutions and Their Transitions > P34 - Financial Economics; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q42 - Alternative Energy Sources; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy

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