A Causality Analysis Between Financial Development and Economic Growth for Botswana

Joel Eita () and Andre Jordaan

The African Finance Journal, 2010, vol. 12, issue 1, 72-89

Abstract: This paper analyses the causal relationship between financial development and economic growth in Botswana for the period 1977-2006, using Granger causality through cointegrated Vector Autoregression methods and two proxies for financial development. Results show that there is a stable long-run relationship between financial development and economic growth regardless of which proxy for financial development is used. Further, results provide evidence of supplyleading and demand-leading views of finance-growth nexus; thus, suggesting that enhancement of both financial markets and real economy’s activity would be an advisable development strategy for Botswana.

JEL-codes: C13 C22 E44 G32 O16 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (7)

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Working Paper: A Causality Analysis between Financial Development and Economic Growth for Botswana (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:afj:journl:v:12:y:2010:i:1:p:72-89

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