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Développement financier et croissance économique en RDC: Supply leading ou demand folowing ?

Financial development and economic growth in the DRC: Supply leading or demand folowing ?

Christian Pinshi () and Anselme M. Kabeya

MPRA Paper from University Library of Munich, Germany

Abstract: This paper aims to verify the causal relationship between financial development and economic growth in the Democratic Republic of Congo (DRC) using data from 2004 to 2019. The dynamic Granger causality analysis is used to analyze the variables. The results indicate that there is a robust, one-way relationship from economic growth to financial development. This result confirms the Demand-following hypothesis that economic growth drives the development of the financial system. Therefore, policies to promote economic growth, such as the accumulation of human capital, macroeconomic stabilization, rehabilitation of key infrastructure, structural reforms and the creation of a good economic environment for the private and regulatory sector, are crucial to improve financial development in the DRC.

Keywords: Financial development; economic growth; Democratic Republic of the Congo (search for similar items in EconPapers)
JEL-codes: G2 O4 (search for similar items in EconPapers)
Date: 2020-06
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