The Relationship between Financial Development and Energy Consumption in South Africa

This paper examines the nexus between financial development and energy consumption in South Africa. To determine long run short relationship Africa, uses an Auto Regressive Distributed Lag bounds test (ARDL) Granger causality to establish type of correlation 1980 2018. ARDL testing method offers concrete long-run estimates t-statistics as it is flexible whether adopted variables are I(0) or I(1). The study used per capita (kilogram, kg oil equivalent) measure total consumption, domestic credit private sector (percentage gross product, GDP) development, real GDP growth (to capture economic growth), industrial value added industrialization, urban population population) urbanization. Results from showed that positive nature both short-run long-run. results revealed unidirectional consumption. Policymakers need formulate policy reforms channels more order bolster use There ought be proper balance avoid electricity crisis.