TY - JOUR
T1 - Energy consumption, institutional quality, and private capital inflows in Africa
AU - Abor, Joshua Y.
AU - Sarpong-Kumankoma, Emmanuel
AU - Osei, Jephthah O.
AU - Ofori-Sasu, Daniel
N1 - Publisher Copyright:
© 2023 Taylor & Francis Group, LLC.
PY - 2023
Y1 - 2023
N2 - This paper investigates how institutional quality conditions energy consumption to influence private capital inflows in Africa using data from 1990 to 2019. The paper employed a modified dynamic system GMM. Our results show that energy consumption has a direct influence on private capital inflows, particularly FDI to Africa. Institutional qualities do not directly influence the effect of energy consumption on FDI but do influence the effect on portfolio investment. However, independently, institutional quality positively motivates FDI inflows into Africa. On the contrary, the reverse analysis showed that private capital inflows do not influence energy consumption in Africa.
AB - This paper investigates how institutional quality conditions energy consumption to influence private capital inflows in Africa using data from 1990 to 2019. The paper employed a modified dynamic system GMM. Our results show that energy consumption has a direct influence on private capital inflows, particularly FDI to Africa. Institutional qualities do not directly influence the effect of energy consumption on FDI but do influence the effect on portfolio investment. However, independently, institutional quality positively motivates FDI inflows into Africa. On the contrary, the reverse analysis showed that private capital inflows do not influence energy consumption in Africa.
KW - Energy consumption
KW - Private capital inflows
KW - institutional quality
UR - http://www.scopus.com/inward/record.url?scp=85150162206&partnerID=8YFLogxK
U2 - 10.1080/15567249.2023.2185840
DO - 10.1080/15567249.2023.2185840
M3 - Article
AN - SCOPUS:85150162206
SN - 1556-7249
VL - 18
JO - Energy Sources, Part B: Economics, Planning and Policy
JF - Energy Sources, Part B: Economics, Planning and Policy
IS - 1
M1 - 2185840
ER -