Financial Development and Energy Consumption Nexus in Nigeria
This paper re-examines the link between financial development and energy consumption in Nigeria both in the long run and the short run. Earlier study reported a negative relationship between financial development and energy consumption in Nigeria which is quite contrary to theoretical expectation...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Danubius University
2016-10-01
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| Series: | Acta Universitatis Danubius: Oeconomica |
| Subjects: | |
| Online Access: | http://journals.univ-danubius.ro/index.php/oeconomica/article/view/3327/3600 |
| Summary: | This paper re-examines the link between financial development and energy consumption in
Nigeria both in the long run and the short run. Earlier study reported a negative relationship between
financial development and energy consumption in Nigeria which is quite contrary to theoretical
expectation and findings for developed and developing economies. The study employed the ARDL
Bounds cointegration approach and a sample period of 1971-2014. A significant long-run relationship
was confirmed between financial development and energy consumption in Nigeria. It was also
deduced that the development of the financial sector exerted positively and significantly on energy
demand in the Nigerian economy, both in the short-run and the long-run periods. It is evident that
policies aimed at developing the financial sector have direct and far-reaching implications on energy
demand in Nigeria. The paper vividly revealed how development in the Nigerian financial sector
exerted on energy demand over a period of 40 years. |
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| ISSN: | 2065-0175 2067-340X |