FINDING LINK BETWEEN FINANCIAL DEVELOPMENT AND ENERGY DEMAND IN AFRICA

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In most regions the production and consumption of energy is considered as a benchmark for shifting toward development of economy. The aim of this study is to determine the relationship of different growth indicators (FDI, GDPPC, RPRICES) and energy consumption and different financial development indicators (domestic credit by banking sector, liquid liability, M2, Domestic credit to private sector) in a selected panel of Sub Saharan countries that are Egypt, Sudan and Nigeria for a period of 39 years from 1977 to 2014. Panel cointegration test found cointegration among the variables and have long term relationship among them. The pooled OLS test suggests that there is significant relationship among the variables and the results concluded that there is a high impact of GDPPC and relative prices of energy on Energy consumption in the region.