Sustainable Energy Supply, Finance, and Domestic Investment Nexus in West Africa

Kayode David Kolawole, Micheal Adebayo Ajayi, Abdulkareem Alhassan, Festus Bekun and Gizem Uzuner ()
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Kayode David Kolawole: Department of Finance, Faculty of Management Sciences, University of Ilorin, Ilorin PMB 1515, Nigeria
Micheal Adebayo Ajayi: Department of Finance, Faculty of Management Sciences, University of Ilorin, Ilorin PMB 1515, Nigeria

Sustainability, 2022, vol. 14, issue 19, 1-11

Abstract: This study examines the impact of financial deepening and sustainable energy supply on domestic investment in West African countries. The data for the study range from 1990 to 2020 and were sourced from the World Development Indicator database. We used the cross-sectional autoregressive distributed lag (CS-ARDL) estimator for the analysis. Empirical findings showed that credit to the private sector significantly impacts domestic investment in West Africa. It was also revealed that access to electricity significantly impacts domestic investment in West Africa. This demonstrates that funding for the private sector and adequate power generation improve the investment in any economy. The study concludes that financial deepening has a significant impact on domestic investment. The study therefore recommends that the management of banks should be encouraged to pursue policies that will deepen the efficient allocation of financial services for domestic investment in the region.

Keywords: financial deepening; financial development; sustainable energy supply; domestic investment; autoregressive distributed lag model (ARDL) (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:19:p:11882-:d:920686

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