Finance and Growth in Africa: The Broken Link

20 Pages Posted: 22 Jul 2011

See all articles by Panicos Demetriades

Panicos Demetriades

University of Leicester - Department of Economics

Gregory James

De Montfort University

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

Demetriades, Panicos O. and James, Gregory, Finance and Growth in Africa: The Broken Link (July 21, 2011). Available at SSRN: https://ssrn.com/abstract=1892274 or http://dx.doi.org/10.2139/ssrn.1892274

Panicos O. Demetriades (Contact Author)

University of Leicester - Department of Economics ( email )

Department of Economics
Leicester LE1 7RH, Leicestershire LE1 7RH
United Kingdom
+ 44 116 252 2835 (Phone)
+ 44 116 252 2908 (Fax)

HOME PAGE: http://www.le.ac.uk/economics/staff/pd28.html

Gregory James

De Montfort University ( email )

The Gateway
Leicester, LE1 9BH
United Kingdom

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