Financial Liberalization, Institutional Quality and Economic Growth Nexus: Panel Analysis of African Countries

Amjad Ali

MPRA Paper from University Library of Munich, Germany

Abstract: The present article has investigated the impact of financial liberalization and institutional quality on economic growth in Africa from 1996 to 2021. The estimated results of the study show that the availability of physical capital, total labor force participation, political stability, and effectiveness of the government have a positive and significant impact on the economic growth of the selected countries. The availability of physical capital and total labor force participation have a bidirectional causal relationship with economic growth. Financial liberalization has an insignificant impact on the economic growth of African countries. The study recommends that to enhance economic growth in Africa, the governments of the African countries should manage physical capital, raise the number of skilled labor force participation and promote institutional quality at the same time. Moreover, to get the true benefit of financial liberalization, African nations should control the negative effect of financial liberalization so that this economic growth can be achieved.

Keywords: financial liberalization; economic growth; political stability; government effectiveness (search for similar items in EconPapers)
JEL-codes: D72 F60 G18 O40 (search for similar items in EconPapers)
Date: 2022, Revised 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/116329/1/MPRA_paper_116329.pdf original version (application/pdf)

Related works:
Working Paper: Financial Liberalization, Institutional Quality and Economic Growth Nexus: Panel Analysis of African Countries (2022)
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:pra:mprapa:116329

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().