Title

Electrification, Telecommunications, and the Finance-Growth Nexus: Evidence from Firm-Level Data

Abstract

We explore variations in access to energy and telecommunications improvements across firms in 57 and 112 developing countries, respectively, between 2002 and 2014, and find that national investments in technological infrastructures provide a channel through which financial development promotes firm-level adoption of tangible innovations. In particular, when countries make large investments in their energy (electricity and natural gas) and telecommunications infrastructures, firms with greater access to financial resources are better positioned to benefit from these investments, experiencing significantly fewer power interruptions, more adoptions of power generators, and greater website use, all of which are related to higher firm-level growth in sales and employment.

Publisher

Elsevier

Publication Date

2-1-2021

Publication Title

Energy Economics

Department

Economics

Document Type

Article

DOI

10.1016/j.eneco.2020.105073

Keywords

Energy-finance-growth nexus, Electrification, IT, Infrastructure, Financial access, Power interruption

Language

English

Format

text

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