Previous page | New search |
The free AfricaBib App for Android is available here
Periodical article | Leiden University catalogue | WorldCat |
Title: | Revisiting the finance-growth nexus in Sub-Saharan Africa: results from error correction-based panel cointegration tests |
Author: | Walle, Yabibal M. |
Year: | 2014 |
Periodical: | African Development Review (ISSN 1467-8268) |
Volume: | 26 |
Issue: | 2 |
Pages: | 310-321 |
Language: | English |
Geographic term: | Subsaharan Africa |
Subjects: | finance economic development economic models |
External link: | https://doi.org/10.1111/1467-8268.12083 |
Abstract: | This paper re-examines the long-run finance-growth nexus in sub-Saharan Africa (SSA) using data from 17 countries over the period 1975-2005. The author applies error correction-based panel cointegration tests that take into account cross-sectional dependence among countries. The results - unlike a previous study using the same data - indicate the existence of a long-run relationship between financial and economic development in SSA countries. Moreover, they clearly show that the long-run causality runs from financial to economic development, although a muted support for the reverse causal impact is observed when financial development is measured by the percentage of liquid liabilities in GDP. The estimated long-run parameters measuring the finance-growth link are positive and statistically significant. Therefore, the results strongly support policies aimed at developing the financial sector in SSA in order to promote long-run economic development. Bibliogr., notes, ref., sum. [Journal abstract] |