EconPapers    
Economics at your fingertips  
 

Finance–growth nexus in sub-Saharan Africa revisited: evidence based on a new composite index

Olufemi Adewale Aluko (), Olufemi Patrick Adeyeye and Patrick Olajide Oladele
Additional contact information
Olufemi Adewale Aluko: University of Ilorin
Olufemi Patrick Adeyeye: Federal University
Patrick Olajide Oladele: Federal University

Economic Change and Restructuring, 2020, vol. 53, issue 2, No 5, 333-355

Abstract: Abstract In this paper, we use a panel dataset of 33 countries to revisit the finance–economic growth nexus in sub-Saharan Africa for the period 1990–2015. Unlike previous studies, we proxy finance with a composite index of financial development which accounts for the multidimensionality of financial development. Also, we consider real sector growth in our empirical analyses. We establish long-run relationships between finance and (real sector and economic) growth. We provide evidence to show that finance and (real sector and economic) growth cause each other. Overall, the findings suggest that the finance (real sector and economic)–growth nexus is sensitive to the choice of econometric methodology.

Keywords: Finance; Economic growth; Real sector growth; Sub-Saharan Africa (search for similar items in EconPapers)
JEL-codes: E44 F43 O16 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10644-019-09253-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:kap:ecopln:v:53:y:2020:i:2:d:10.1007_s10644-019-09253-9

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/10644/PS2

DOI: 10.1007/s10644-019-09253-9

Access Statistics for this article

Economic Change and Restructuring is currently edited by George Hondroyiannis

More articles in Economic Change and Restructuring from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2021-06-17
Handle: RePEc:kap:ecopln:v:53:y:2020:i:2:d:10.1007_s10644-019-09253-9