Financial Development and Economic Complexity in South Africa

Chuma Maxwele ()
Additional contact information
Chuma Maxwele: Nelson Mandela University

Africagrowth Agenda, 2025, vol. 22, issue 3, 4-7

Abstract: South Africa’s financial sector is ranked among the best in the world, as its financial systems are sophisticated, organised and well developed. However, the question is: can South Africa take advantage of its ro- bust financial sector to advance the economic complexity of the country? This study examines the impact of financial development on economic complexity in South Africa from year 1995 to 2022 using the fully modified least square (FMOLS) model. The results of the study show that financial development has a negative impact on economic com- plexity, implying that a stronger financial sector does not necessarily translate into higher sophistication. Thus, to improve complexity in the country, the government must improve its institutional settings, which will later lead to an increase in capital investment.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.co.za/doi/abs/10.10520/ejc-afgrow_v22_n3_a1 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:afj:journ2:v:22:y:2025:i:3:p:4-7

Access Statistics for this article

More articles in Africagrowth Agenda from Africagrowth Institute Contact information at EDIRC.
Bibliographic data for series maintained by Kirk De Doncker ().