Financial development and economic growth: Literature survey and empirical evidence from sub-Saharan African countries

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Acaravci S. K., Ozturk I., ACARAVCI A.

South African Journal of Economic and Management Sciences, cilt.12, sa.1, ss.11-27, 2009 (SSCI) identifier

  • Yayın Türü: Makale / Derleme
  • Cilt numarası: 12 Sayı: 1
  • Basım Tarihi: 2009
  • Doi Numarası: 10.4102/sajems.v12i1.258
  • Dergi Adı: South African Journal of Economic and Management Sciences
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.11-27
  • Anahtar Kelimeler: Financial development, Growth, Panel causality, Sub-Saharan Africa
  • Hatay Mustafa Kemal Üniversitesi Adresli: Evet

Özet

In this paper we review the literature on the finance-growth nexus and investigate the causality between financial development and economic growth in sub-Saharan Africa for the period 1975-2005. Using panel co-integration and panel GMM estimation for causality, the results of the panel co-integration analysis provide evidence of no long-run relationship between financial development and economic growth. The empirical findings in the paper show a bi-directional causal relationship between the growth of real GDP per capita and the domestic credit provided by the banking sector for the panels of 24 sub-Saharan African countries. The findings imply that African countries can accelerate their economic growth by improving their financial systems and vice versa.