The impact of financial liberalization on economic growth in sub-Saharan Africa
Foluso Akinsola and
Nicholas Odhiambo
Cogent Economics & Finance, 2017, vol. 5, issue 1, 1338851
Abstract:
This study examines the impact of financial liberalization on economic growth, given the discrepancy and the gap in the literature, using a sample of 30 sub-Saharan African (SSA) countries. The study applies a dynamic panel estimation to examine the special role of financial liberalization and banking crises on economic growth in SSA. The linear generalized method of moments is estimated according to the Arellano and Bover approach. We also examine whether differences in income levels across countries in sub-Saharan Africa will affect the relative impact of financial liberalization in SSA. Our findings indicate that the coefficient of the financial liberalization variable is positive and significant for SSA. However, the financial liberalization dummy sign changed to negative for low-income countries, even though it was statistically insignificant. The results also show that there is a negative relationship between a banking crisis and economic growth, showing that the period of a banking crisis can drastically affect economic growth in sub-Saharan Africa. Considering the crucial role played by most financial intermediaries in developing countries, the results have some implications for different African countries, especially countries whose economies are still undergoing financial reforms.
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)
Downloads: (external link)
http://hdl.handle.net/10.1080/23322039.2017.1338851 (text/html)
Access to full text is restricted to subscribers.
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:taf:oaefxx:v:5:y:2017:i:1:p:1338851
Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/OAEF20
DOI: 10.1080/23322039.2017.1338851
Access Statistics for this article
Cogent Economics & Finance is currently edited by Steve Cook, Caroline Elliott, David McMillan, Duncan Watson and Xibin Zhang
More articles in Cogent Economics & Finance from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().