Financial market development, global financial crisis and economic growth: evidence from developing nations

Rubi Ahmad (), Oyebola Fatima Etudaiye-Muhtar, Bolaji Tunde Matemilola () and Bany Ariffin Amin Noordin ()
Additional contact information
Oyebola Fatima Etudaiye-Muhtar: University of Malaya
Bolaji Tunde Matemilola: Universiti Putra Malaysia

Portuguese Economic Journal, 2016, vol. 15, issue 3, No 6, 199-214

Abstract: Abstract Emerging and frontier markets in Africa have witnessed various economic and financial reforms aimed at integrating the domestic markets into the global financial market to attract investment. Whether these reforms promote high economic growth remains inconclusive. The paper applies the pooled mean group estimation technique to empirically re-investigate the link between financial market development, global financial crisis, and economic growth in selected African economies. The results strongly support our hypotheses that stock market and banking sector development promotes economic growth in the selected countries. Moreover, financial crisis reduce the positive effects of both the stock market and banking sector developments on economic growth. The study suggests that both the banking sector and stock market are important to deliver the long-run economic growth that the African region desired. Moreover, effort should be made to enact policy measures that would ensure development of the stock market which has received inadequate attention.

Keywords: Financial development; Financial crisis; Dynamic heterogeneous panel; Growth; Africa (search for similar items in EconPapers)
JEL-codes: G10 O11 O16 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://link.springer.com/10.1007/s10258-016-0123-8 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:spr:portec:v:15:y:2016:i:3:d:10.1007_s10258-016-0123-8

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10258/PS2

DOI: 10.1007/s10258-016-0123-8

Access Statistics for this article

Portuguese Economic Journal is currently edited by Luís F. Costa

More articles in Portuguese Economic Journal from Springer, Instituto Superior de Economia e Gestao
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().