Acta Universitatis Danubius. Œconomica, Vol 15, No 1 (2019)

Financial Development, Investment and Energy Consumption in Nigeria: ARDL Approach

Shehu Muhammad


The study investigates the link between financial development, investment and energy consumption in Nigeria. The aim of the study is to re-examine financial development and energy consumption model by considering investment as a factor that contributes to more energy demand for consumption. The study employs an annual data within the period 1981 and 2015. The Auto-regressive Distributed Lag (ARDL) Method is used to analyse the data. From the results, financial development had a negative impact on energy consumption both in the short-run and the long-run, investment, population growth and economic growth had a positive impact on energy used. This propels the conclusion that financial development is an important determinant factor of energy consumption in Nigeria and government should consider a policy that incorporate financial development into its plan.


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