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

Author

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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)

  • Abdulkareem Alhassan

    (Department of Economics, Faculty of Social Sciences, Federal University of Lafia, Lafia PMB 146, Nigeria)

  • Festus Victor Bekun

    (Department of International Logistics and Transportation, Faculty of Economics Administrative and Social Sciences, Istanbul Gelisim University, 34310 Istanbul, Turkey
    Department of Economics, Adnan Kassar School of Business, Lebanese American University, Beirut 11022801, Lebanon)

  • Gizem Uzuner

    (Department of Economics and Finance, Faculty of Economics Administrative and Social Sciences, Istanbul Gelisim University, 34310 Istanbul, Turkey)

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.

Suggested Citation

  • Kayode David Kolawole & Micheal Adebayo Ajayi & Abdulkareem Alhassan & Festus Victor Bekun & Gizem Uzuner, 2022. "Sustainable Energy Supply, Finance, and Domestic Investment Nexus in West Africa," Sustainability, MDPI, vol. 14(19), pages 1-11, September.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:19:p:11882-:d:920686
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    References listed on IDEAS

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