Finance and Growth in Africa: The Broken Link
20 Pages Posted: 22 Jul 2011
Date Written: July 21, 2011
Abstract
Utilizing the latest panel cointegration methods we provide new empirical evidence from 18 countries that suggests that the link between finance and growth in Sub-Saharan Africa is ‘broken’. Specifically, our findings suggest that banking system development in this region follows economic growth. They also indicate that there is no link between bank credit and economic growth.
Keywords: Panel cointegration, cross-sectional dependence, African financial under-development, African credit markets
JEL Classification: G21, O16
Suggested Citation: Suggested Citation
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