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Measuring financial inclusion in African countries

Author

Listed:
  • Désiré Avom

    (University of Yaoundé 2 (Soa), CEREG)

  • Chrysost Bangaké

    (University of Artois, Lille Economie et Management (LEM), Arras, F-62000, France)

  • Hermann Ndoya

    (University of Dschang, Laboratoire de Recherche en Economie Fondamentale et Appliquée (LAREFA))

Abstract

Electricity planning is a key strategic business in the mining industry. Thus, this paper assesses the electricity demand in the Brazilian iron ore industry with an emphasis on electricity prices and the production value chain to address the sector-specific behavioral patterns, using daily data from December 2018 to April 2020. By employing impulse response functions and variance decomposition analysis, the paper shows that electricity demand is primarily determined by internal factors of the ore production rather than exogenous variables, such as the electricity price and weather conditions. Moreover, short and long-run electricity price elasticities are computed, providing further insights into the dynamics of the sector, and indicating that price is inelastic with similar values for both time frames. This suggests from an energy policy perspective that any price movements (taxes) are bound to have a fairly limited effect as they may cause financial turmoil given the long-term characteristic of delivery contracts in the sector.

Suggested Citation

  • Désiré Avom & Chrysost Bangaké & Hermann Ndoya, 2021. "Measuring financial inclusion in African countries," Economics Bulletin, AccessEcon, vol. 41(3), pages 848-866.
    • Handle: RePEc:ebl:ecbull:eb-20-00630
    as

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    References listed on IDEAS

    as
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    5. Ahamed, M. Mostak & Mallick, Sushanta K., 2019. "Is financial inclusion good for bank stability? International evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 157(C), pages 403-427.
    6. Loan Thi-Hong Van & Anh The Vo & Nhan Thien Nguyen & Duc Hong Vo, 2021. "Financial Inclusion and Economic GROWTH: An International Evidence," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(1), pages 239-263, January.
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    9. Isaac Koomson & Renato A. Villano & David Hadley, 2020. "Effect of Financial Inclusion on Poverty and Vulnerability to Poverty: Evidence Using a Multidimensional Measure of Financial Inclusion," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(2), pages 613-639, June.
    10. Chakravarty, Satya R. & Pal, Rupayan, 2013. "Financial inclusion in India: An axiomatic approach," Journal of Policy Modeling, Elsevier, vol. 35(5), pages 813-837.
    11. Samuel Guérineau & Luc Jacolin, 2014. "L'inclusion financière en Afrique subsaharienne : faits stylisés et déterminants," Revue d'économie financière, Association d'économie financière, vol. 0(4), pages 57-80.
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    Cited by:

    1. Inès Gharbi & Aïda Kammoun, 2023. "Developing a Multidimensional Financial Inclusion Index: A Comparison Based on Income Groups," JRFM, MDPI, vol. 16(6), pages 1-19, June.
    2. Hermann Ndoya & Charly Tsala & Brice Kamguia, 2024. "What drive financial inclusion gender gap in Cameroon? A Fairlie decomposition approach," Bulletin of Economic Research, Wiley Blackwell, vol. 76(3), pages 822-838, July.
    3. Avom, Désiré & Bangaké, Chrysost & Ndoya, Hermann, 2023. "Do financial innovations improve financial inclusion? Evidence from mobile money adoption in Africa," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    4. Hermann Hegueu Ndoya & Charly Ondobo Tsala, 2021. "What drive gender gap in financial inclusion? Evidence from Cameroon," African Development Review, African Development Bank, vol. 33(4), pages 674-687, December.

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    More about this item

    Keywords

    Financial inclusion; Principal component analysis (PCA); Africa;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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