Is financial development shaping or shaking economic sophistication in African countries?

Henri Njangang (), Simplice Asongu, Sosson Tadadjeu () and Yann Nounamo ()
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Sosson Tadadjeu: University of Dschang , Cameroon
Yann Nounamo: University of Douala, Douala, Cameroon

No 21/018, Working Papers of the African Governance and Development Institute. from African Governance and Development Institute.

Abstract: This paper aims to investigate the effect of financial development on economic complexity using a panel dataset of 24 African countries over the period 1983-2017. The empirical evidence is based on two different approaches. First, we adopt the Hoechle (2007) procedure which produces Driscoll-Kraay standard errors to account for heteroscedasticity and cross–sectional dependence. Second, we implement the system Generalized Method of Moments to account for endogeneity. The results show that financial development increases economic complexity in Africa. Looking at the regional difference, the results show that this effect is less beneficial for SSA countries.

Keywords: Financial development; Economic complexity; Panel data analysis; Africa (search for similar items in EconPapers)
JEL-codes: E02 G20 G24 O55 P14 (search for similar items in EconPapers)
Pages: 13
Date: 2021-01
New Economics Papers: this item is included in nep-cwa, nep-mac and nep-pay
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Citations: View citations in EconPapers (7)

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http://www.afridev.org/RePEc/agd/agd-wpaper/Is-fin ... frican-countries.pdf Revised version, 2021 (application/pdf)

Related works:
Working Paper: Is financial development shaping or shaking economic sophistication in African countries? (2021)
Working Paper: Is financial development shaping or shaking economic sophistication in African countries? (2021)
Working Paper: Is financial development shaping or shaking economic sophistication in African countries? (2021)
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