International Journal of Social Science & Economic Research
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Title:
ENERGY CONSUMPTION GOVERNMENT SPENDING ENERGY PRICE ON GROWTH IN GHANA: NONLINEAR ARDL APPROACH

Authors:
Muhammad Aminu Haruna , Suraya Mahmood

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Muhammad Aminu Haruna1 , Suraya Mahmood2
1,2. Department of Economics, Universiti Sultan Zainal Abidin Terengganu, Malaysia

MLA 8
Haruna, Muhammad Aminu, and Suraya Mahmood. "ENERGY CONSUMPTION GOVERNMENT SPENDING ENERGY PRICE ON GROWTH IN GHANA: NONLINEAR ARDL APPROACH." Int. j. of Social Science and Economic Research, vol. 4, no. 10, Oct. 2019, pp. 6598-6618, ijsser.org/more2019.php?id=508. Accessed Oct. 2019.
APA
Haruna, M., & Mahmood, S. (2019, October). ENERGY CONSUMPTION GOVERNMENT SPENDING ENERGY PRICE ON GROWTH IN GHANA: NONLINEAR ARDL APPROACH. Int. j. of Social Science and Economic Research, 4(10), 6598-6618. Retrieved from ijsser.org/more2019.php?id=508
Chicago
Haruna, Muhammad Aminu, and Suraya Mahmood. "ENERGY CONSUMPTION GOVERNMENT SPENDING ENERGY PRICE ON GROWTH IN GHANA: NONLINEAR ARDL APPROACH." Int. j. of Social Science and Economic Research 4, no. 10 (October 2019), 6598-6618. Accessed October, 2019. ijsser.org/more2019.php?id=508.

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Abstract:
This study employs a nonlinear autoregressive distributive lag model (NARDL) approach to investigate the asymmetric causality among energy consumption, government spending, energy price, and growth as well as long and short-run relationship. Time series data from 1980-2017 for Ghana sourced from world bank were employ. Unit root test based on ADF and PP and Zivot and Andrew establish the variables have mixed order of integration I(0) and I(1). The bound test determines the presence of cointegration. The positive shock of energy on growth is 1.25%, and negative shock is 0.34% in the long run. The short-run positive and adverse shocks are 0.61% and 0.17%, respectively. The outcome implies that positive shock impacted more on the growth than negative shock. The positive asymmetric causality supported the conservation hypothesis while the negative asymmetric causality backed feedback hypothesis. It highlighted the fact that no single package will solve the energy poverty in Ghana, but rather a highbred and dynamic approach is required. The policy implications are informed.