Financial globalization, governance and economic growth in Sub-Saharan Africa

Audrey Afua Foriwaa Adjei, John Gartchie Gatsi, Michael Owusu Appiah, Mac Junior Abeka and Peterson Owusu Junior

Journal of Financial Economic Policy, 2024, vol. 16, issue 6, 801-824

Abstract: Purpose - The study aims to assess the interplay between financial globalization, effective governance and economic growth in sub-Saharan African (SSA) economies. Design/methodology/approach - This study uses the Generalized Method of Moment Estimation and the Panel Quantile Regression techniques to analyze how financial globalization and governance impact sub-Saharan African economies. Findings - The results show that governance is vital to the region's economic development. In order to achieve significant growth, sub-Saharan African economies must prioritize actions that promote good governance. Research limitations/implications - The study is limited to sub-Saharan African economies. Practical implications - It is crucial for the sub-Saharan Africa economies to concentrate on strengthening governance frameworks in order to realize its full economic potential because improvements in governance quality would have a favorable effect on economic growth. Social implications - The findings indicate that both capital inflows and governance dynamics are essential for fostering economic growth in SSA economies. Also, balancing globalization's benefits with effective governance is crucial for promoting sustainable growth in SSA. Originality/value - This paper fills a gap in literature by using the KOF financial globalization index to assess the impact of financial globalization and governance on economic growth in sub-Saharan African economies.

Keywords: Financial globalization; Governance; Economic growth (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfeppp:jfep-08-2023-0234

DOI: 10.1108/JFEP-08-2023-0234

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