Population growth, income growth and savings in Ghana

Abstract

Purpose: The study explores the relationship among economic growth, population growth, gross savings and energy consumption over the period 1987– 2017. Design/methodology/approach: The autoregressive distributed lag (ARDL) bounds test approach by Pesaran et al. (2001) was employed to investigate variables for the study. Findings: In the key findings, both gross savings and population growth negatively affect economic growth. However, energy consumption has positive impact on economic growth. Practical implications: These findings call for policy portfolios to address the impacts of gross savings and population growth on economic development. In particular, the financial sector needs to be revamped to be more efficient in channeling funds from the surplus units to the deficit units. It is recommended that investment be made in financial and technological innovation to provide efficient access to credits and other financial products even though individual savings may not move with economic growth. Originality/value: Many studies have explored the nexus between savings and economic growth without considering population growth and energy consumption. In this study, the relationship among savings, economic growth, population growth and energy consumption provide additional knowledge in policy formulation.