Spatiotemporal analysis of energy consumption and financial development in African OPEC countries
International Journal of Energy Sector Management
ISSN: 1750-6220
Article publication date: 31 October 2022
Issue publication date: 25 July 2023
Abstract
Purpose
This study aims to investigate in a country-specific comparative and panel form, the impact of energy use on financial development in Organisation of Petroleum Exporting Countries (OPEC)-African countries of Algeria, Gabon, Libya and Nigeria.
Design/methodology/approach
With data sets covering the period 1980 to 2020, this study used a combination of country-specific autoregressive distributed lag model (ARDL) and panel-ARDL as well geo-maps to show the spatiotemporal nuances of the investigated countries.
Findings
It was discovered across the investigated countries and in the panel framework that energy consumption significantly impacts both bank development and institutional development, which are subsets of financial development. In addition, evidence in favor of adjustment of financial development to the shocks and dynamics of energy consumption was found.
Practical implications
Integrative developmental drive for the two sectors can enhance growth and value-chain interactions for the imperatives of the overall growth and development of the OPEC-African countries.
Originality/value
This study adds to the literature on finance and energy development by the introduction of the spatiotemporal analysis.
Keywords
Acknowledgements
Professor Chuck Arize appreciates the financial support of Ms Alicia Currinn.
Citation
Nwafor, F.U., Kalu, E.U., Arize, A.C. and Onwumere, J.U.J. (2023), "Spatiotemporal analysis of energy consumption and financial development in African OPEC countries", International Journal of Energy Sector Management, Vol. 17 No. 5, pp. 925-949. https://doi.org/10.1108/IJESM-03-2022-0010
Publisher
:Emerald Publishing Limited
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