Electric Power Transmission, Distribution Losses, and Economic Growth in Ghana

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Author(s): Samuel Adams (Ghana Institute of Management and Public Administration, Ghana), Edem Kwame Mensah Klobodu (Ghana Institute of Management and Public Administration, Ghana)and Richmond Odartey Lamptey (Ghana Institute of Management and Public Administration, Ghana)
Copyright: 2020
Pages: 18
Source title: Wealth Creation and Poverty Reduction: Breakthroughs in Research and Practice
Source Author(s)/Editor(s): Information Resources Management Association (USA)
DOI: 10.4018/978-1-7998-1207-4.ch027

Keywords: Business & Management / Economics & Economic Theory / Information Science Reference / Socio-Economic Development

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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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Electric Power Transmission, Distribution Losses, and Economic Growth in Ghana

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