Lightening the Path to Financial Development: The Power of Electricity

Lei Pan, Richard Dwumfour and Veasna Kheng

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the impact of access to electricity on financial development. In doing so, we use plausibly exogenous variations in population density as an instrument for electrification rate. Using panel data for 44 countries in Sub-Saharan Africa over the period 2000 to 2018, the results suggest that more people having access to electricity can promote financial development. In addition, mobile phone and commercial bank branches diffusion serve as potential channels through which access to electricity affects financial development. The results have important implications for policies in overcoming barriers to electricity access.

Keywords: Access to electricity; Financial development; Sub-Saharan Africa; Population density (search for similar items in EconPapers)
JEL-codes: O16 Q43 (search for similar items in EconPapers)
Date: 2022-06-12
New Economics Papers: this item is included in nep-afr, nep-ene, nep-fdg and nep-pay
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https://mpra.ub.uni-muenchen.de/113358/1/MPRA_paper_113358.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/119997/1/MPRA_paper_113358.pdf revised version (application/pdf)

Related works:
Journal Article: Lightening the path to financial development: The power of electricity (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:113358

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