TY - JOUR
T1 - Does financial development enhance access to electricity? A rural-urban perspective in India
AU - Shahbaz, Muhammad
AU - Siddiqui, Aaliyah
AU - Sinha, Avik
AU - Bigerna, Simona
N1 - Publisher Copyright:
© 2024 Elsevier Ltd
PY - 2024/3/15
Y1 - 2024/3/15
N2 - This paper investigates the relationship between financial development and access to electricity for rural and urban India by incorporating economic growth, trade, and foreign direct investment in energy production function. In doing so, we have applied autoregressive distributed lag bounds testing to examine long run cointegration between the variables by accommodating structural break(s) stemming in the series. Our empirical results indicate the presence of cointegration association between access to electricity and its determinants. We note that financial development enhances access to electricity in rural India but declines it in urban India. Economic growth has positive effect on access to electricity. Trade openness and foreign direct investment lower access to electricity in rural India. In urban India, trade openness and foreign direct investment increase access to electricity. The association between financial development and access to electricity is inverted-U shaped for rural and urban India. This paper would present new policy direction for Indian government to enhance access to electricity by using financial development as an economic tool.
AB - This paper investigates the relationship between financial development and access to electricity for rural and urban India by incorporating economic growth, trade, and foreign direct investment in energy production function. In doing so, we have applied autoregressive distributed lag bounds testing to examine long run cointegration between the variables by accommodating structural break(s) stemming in the series. Our empirical results indicate the presence of cointegration association between access to electricity and its determinants. We note that financial development enhances access to electricity in rural India but declines it in urban India. Economic growth has positive effect on access to electricity. Trade openness and foreign direct investment lower access to electricity in rural India. In urban India, trade openness and foreign direct investment increase access to electricity. The association between financial development and access to electricity is inverted-U shaped for rural and urban India. This paper would present new policy direction for Indian government to enhance access to electricity by using financial development as an economic tool.
KW - Access to electricity
KW - Financial development
KW - India
UR - http://www.scopus.com/inward/record.url?scp=85183660357&partnerID=8YFLogxK
U2 - 10.1016/j.energy.2024.130464
DO - 10.1016/j.energy.2024.130464
M3 - Article
AN - SCOPUS:85183660357
SN - 0360-5442
VL - 291
JO - Energy
JF - Energy
M1 - 130464
ER -