Financial development and economic growth: Literature survey and empirical evidence from sub-Saharan African countries
South African Journal of Economic and Management Sciences, cilt.12, sa.1, ss.11-27, 2009 (SSCI, Scopus)
- 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
- Açık Arşiv Koleksiyonu: AVESİS Açık Erişim Koleksiyonu
- 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.