Financial Development and Economic Growth: The Experience of 10 Sub-Saharan African Countries Revisited
Anthony Akinlo and
Additional contact information
Tajudeen Egbetunde: Academia de Studii Economice / Facultatea de Finante, Asigurari, Banci si Burse de Valori
The Review of Finance and Banking, 2010, vol. 02, issue 1, 017-028
The paper examines the long run and causal relationship between financial development and economic growth for ten countries in sub-Saharan Africa. Using the vector error correction model (VECM), the study finds that financial development is cointegrated with economic growth in the selected ten countries in sub-Saharan Africa. That is there is a long run relationship between financial development and economic growth in the selected sub-Saharan African countries. The results show that financial development Granger causes economic growth in Central African Republic, Congo Republic, Gabon, and Nigeria while economic growth Granger causes financial development in Zambia. However, bidirectional relationship between financial development and economic growth was found in Kenya, Chad, South Africa, Sierra Leone and Swaziland. The results show the need to develop the financial sector through appropriate regulatory and macroeconomic policies. However, in Zambia emphasis needs to be placed on economic growth to propel financial development.
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (17) Track citations by RSS feed
Downloads: (external link)
http://www.rfb.ase.ro/articole/A2-Akinlo.pdf Full text (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:rfb:journl:v:02:y:2010:i:1:p:017-028
Access Statistics for this article
The Review of Finance and Banking is currently edited by Victor Dragota; Bogdan Negrea
More articles in The Review of Finance and Banking from Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante Strada Mihai Eminescu nr.13-15, sector 1, Bucuresti, Romania. Contact information at EDIRC.
Series data maintained by Tatu Lucian ().