Is financial development shaping or shaking economic sophistication in African countries?

Henri Njangang, Simplice Asongu, Sosson Tadadjeu and Yann Nounamo

MPRA Paper from University Library of Munich, Germany

Abstract: This paper aims to investigate the effect of financial development on economic complexity using a panel dataset of 24 African countries over the period 1983-2017. The empirical evidence is based on two different approaches. First, we adopt the Hoechle (2007) procedure which produces Driscoll-Kraay standard errors to account for heteroscedasticity and cross–sectional dependence. Second, we implement the system Generalized Method of Moments to account for endogeneity. The results show that financial development increases economic complexity in Africa. Looking at the regional difference, the results show that this effect is less beneficial for SSA countries.

Keywords: Financial development; Economic complexity; Panel data analysis; Africa (search for similar items in EconPapers)
JEL-codes: E02 G20 G24 O55 P14 (search for similar items in EconPapers)
Date: 2021-01
New Economics Papers: this item is included in nep-afr, nep-ban, nep-cfn, nep-cwa and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Working Paper: Is financial development shaping or shaking economic sophistication in African countries? (2021)
Working Paper: Is financial development shaping or shaking economic sophistication in African countries? (2021)
Working Paper: Is financial development shaping or shaking economic sophistication in African countries? (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:110132

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