Financial Development and Economic Growth in Sub-Saharan Africa: The Role of Institutions
The study aims to determine the relationship between financial development and economic growth with respect to the state of institutional quality on 27 Sub-Saharan Africa countries using a five-year averaged dataset over the period 1982-2016. The findings established evidence of a U-shaped relations...
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Economia Civile
2021
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| Online Access: | https://www.researchgate.net/publication/339324747_Financial_Development_and_Economic_Growth_in_Sub-Saharan_Africa_The_Role_of_Institutions/link/5e4b7a4592851c7f7f43e110/download http://hdl.handle.net/11408/4333 |
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| author | Bandura, Witness Nyasha Dzingirai, Canicio |
| author_facet | Bandura, Witness Nyasha Dzingirai, Canicio |
| author_sort | Bandura, Witness Nyasha |
| collection | DSpace |
| description | The study aims to determine the relationship between financial development and economic growth with respect to the state of institutional quality on 27 Sub-Saharan Africa countries using a five-year averaged dataset over the period 1982-2016. The findings established evidence of a U-shaped relationship between financial development and growth which entails that more (less) finance drives (retards) growth in the region. The turning point beyond which financial development begins to contribute positively on economic growth ranges between 33% and 37%. Even though the connection is not strong, the selected institutional variables also showed both a direct and an indirect positive impact on economic growth. Financial development is positive and significant when embedded in selected well-developed institutions, which implies a complementary relationship of institutions and financial development on growth. It is therefore recommended that policy makers and responsible authorities take stringent measures to ensure the development of institutions and the financial sector for sustainable economic growth in the region. |
| format | Article |
| id | ir-11408-4333 |
| institution | My University |
| language | English |
| publishDate | 2021 |
| publisher | Economia Civile |
| record_format | dspace |
| spelling | ir-11408-43332022-06-27T13:49:06Z Financial Development and Economic Growth in Sub-Saharan Africa: The Role of Institutions Bandura, Witness Nyasha Dzingirai, Canicio Financial development economic growth Sub-Saharan Africa The role of institutions The study aims to determine the relationship between financial development and economic growth with respect to the state of institutional quality on 27 Sub-Saharan Africa countries using a five-year averaged dataset over the period 1982-2016. The findings established evidence of a U-shaped relationship between financial development and growth which entails that more (less) finance drives (retards) growth in the region. The turning point beyond which financial development begins to contribute positively on economic growth ranges between 33% and 37%. Even though the connection is not strong, the selected institutional variables also showed both a direct and an indirect positive impact on economic growth. Financial development is positive and significant when embedded in selected well-developed institutions, which implies a complementary relationship of institutions and financial development on growth. It is therefore recommended that policy makers and responsible authorities take stringent measures to ensure the development of institutions and the financial sector for sustainable economic growth in the region. 2021-06-02T13:20:37Z 2021-06-02T13:20:37Z 2019 Article 2037-3643 https://www.researchgate.net/publication/339324747_Financial_Development_and_Economic_Growth_in_Sub-Saharan_Africa_The_Role_of_Institutions/link/5e4b7a4592851c7f7f43e110/download http://hdl.handle.net/11408/4333 en PSL Quarterly Review;vol. 72 ; No. 291 : p.315-334 open Economia Civile |
| spellingShingle | Financial development economic growth Sub-Saharan Africa The role of institutions Bandura, Witness Nyasha Dzingirai, Canicio Financial Development and Economic Growth in Sub-Saharan Africa: The Role of Institutions |
| title | Financial Development and Economic Growth in Sub-Saharan Africa: The Role of Institutions |
| title_full | Financial Development and Economic Growth in Sub-Saharan Africa: The Role of Institutions |
| title_fullStr | Financial Development and Economic Growth in Sub-Saharan Africa: The Role of Institutions |
| title_full_unstemmed | Financial Development and Economic Growth in Sub-Saharan Africa: The Role of Institutions |
| title_short | Financial Development and Economic Growth in Sub-Saharan Africa: The Role of Institutions |
| title_sort | financial development and economic growth in sub-saharan africa: the role of institutions |
| topic | Financial development economic growth Sub-Saharan Africa The role of institutions |
| url | https://www.researchgate.net/publication/339324747_Financial_Development_and_Economic_Growth_in_Sub-Saharan_Africa_The_Role_of_Institutions/link/5e4b7a4592851c7f7f43e110/download http://hdl.handle.net/11408/4333 |
| work_keys_str_mv | AT bandurawitnessnyasha financialdevelopmentandeconomicgrowthinsubsaharanafricatheroleofinstitutions AT dzingiraicanicio financialdevelopmentandeconomicgrowthinsubsaharanafricatheroleofinstitutions |