Electric power transmission, distribution losses, and economic growth in Ghana

Samuel Adams; Edem Kwame Mensah Klobodu; Richmond Odartey Lamptey

doi:10.4018/978-1-7998-1207-4.ch027

Electric power transmission, distribution losses, and economic growth in Ghana

Samuel Adams^*, Edem Kwame Mensah Klobodu, Richmond Odartey Lamptey

^*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review

Abstract

This study examined the effect of electric power transmission and distribution losses (ETL) on economic growth over the period of 1971 to 2012 in Ghana. Using bounds testing approach to cointegration and Bai-Perron test in ordinary least squares framework, we find long-run relationship between ETL, gross capital formation, inflation, trade openness and economic growth. Secondly, while ETL do not have robust impact on economic growth, trade openness exerts a positive impact on economic growth in the long-run. Inflation and gross capital formation, however, have mixed relationships with economic growth. Furthermore, ETL yield a threshold value of 2.07. Finally, controlling for the urban population reveals that ETL moderates the relationship between urbanization and economic growth; higher ETL associates with an increasing negative effect on GDP per capita.

Original language	English
Title of host publication	Wealth Creation and Poverty Reduction
Subtitle of host publication	Breakthroughs in Research and Practice
Publisher	IGI Global
Pages	450-467
Number of pages	18
ISBN (Electronic)	9781799812081
ISBN (Print)	9781799812074
DOIs	https://doi.org/10.4018/978-1-7998-1207-4.ch027
Publication status	Published - 6 Dec 2019
Externally published	Yes

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title = "Electric power transmission, distribution losses, and economic growth in Ghana",

abstract = "This study examined the effect of electric power transmission and distribution losses (ETL) on economic growth over the period of 1971 to 2012 in Ghana. Using bounds testing approach to cointegration and Bai-Perron test in ordinary least squares framework, we find long-run relationship between ETL, gross capital formation, inflation, trade openness and economic growth. Secondly, while ETL do not have robust impact on economic growth, trade openness exerts a positive impact on economic growth in the long-run. Inflation and gross capital formation, however, have mixed relationships with economic growth. Furthermore, ETL yield a threshold value of 2.07. Finally, controlling for the urban population reveals that ETL moderates the relationship between urbanization and economic growth; higher ETL associates with an increasing negative effect on GDP per capita.",

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N2 - This study examined the effect of electric power transmission and distribution losses (ETL) on economic growth over the period of 1971 to 2012 in Ghana. Using bounds testing approach to cointegration and Bai-Perron test in ordinary least squares framework, we find long-run relationship between ETL, gross capital formation, inflation, trade openness and economic growth. Secondly, while ETL do not have robust impact on economic growth, trade openness exerts a positive impact on economic growth in the long-run. Inflation and gross capital formation, however, have mixed relationships with economic growth. Furthermore, ETL yield a threshold value of 2.07. Finally, controlling for the urban population reveals that ETL moderates the relationship between urbanization and economic growth; higher ETL associates with an increasing negative effect on GDP per capita.

AB - This study examined the effect of electric power transmission and distribution losses (ETL) on economic growth over the period of 1971 to 2012 in Ghana. Using bounds testing approach to cointegration and Bai-Perron test in ordinary least squares framework, we find long-run relationship between ETL, gross capital formation, inflation, trade openness and economic growth. Secondly, while ETL do not have robust impact on economic growth, trade openness exerts a positive impact on economic growth in the long-run. Inflation and gross capital formation, however, have mixed relationships with economic growth. Furthermore, ETL yield a threshold value of 2.07. Finally, controlling for the urban population reveals that ETL moderates the relationship between urbanization and economic growth; higher ETL associates with an increasing negative effect on GDP per capita.

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Electric power transmission, distribution losses, and economic growth in Ghana

Abstract

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