Exploring the Drivers of Economic Growth in Sub-Saharan Africa: The Interactive Effect of Globalization and Financial Development

Ibrahim Nandom Yakubu

MPRA Paper from University Library of Munich, Germany

Abstract: This study investigates how globalization and financial development interactively stimulate economic growth in Sub-Saharan Africa (SSA). The author employs annual data spanning from 2000 to 2017 for 30 Sub-Saharan African countries and applies the generalized method of moments (GMM) technique. The results show that while globalization significantly reduces economic growth, the impact of financial development on growth is positive when examined independently. With the interactive effect of globalization and financial development, a positive and statistically significant impact is documented. The study further reveals that trade openness significantly enhances growth while inflation inhibits growth. In light of the findings, the author presents key policy recommendations.

Keywords: Globalization; Financial development; Economic growth; Sub-Saharan Africa (search for similar items in EconPapers)
JEL-codes: F43 F62 G20 (search for similar items in EconPapers)
Date: 2022-10-28
New Economics Papers: this item is included in nep-afr, nep-fdg and nep-int
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Citations: View citations in EconPapers (1)

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