Finance and Economic Development in Africa: Introduction and Overview

Journal of African Economies 21(suppl_1):3-9. DOI: 10.1093/jae/ejr048

Posted: 13 Dec 2014

See all articles by Olu Ajakaiye

Olu Ajakaiye

Independent

Finn Tarp

University of Copenhagen - Department of Economics

Date Written: December 2012

Abstract

It is clear that a lot remains to be learnt about the role of the financial sector in African growth and development process. All three papers in this volume focus on the existing consensus in the literature that there seems to be a positive relationship between financial development and economic progress. Harris aptly draws attention to the broad association between financial sector development and economic growth, and Murinde even suggests that financial development may be as important as human capital accumulation. Andersen et al., in turn, are more sceptical and bring out the existing ambiguities, both theoretical and empirical, underlying the finance-growth consensus. They highlight that existing empirical results are far from robust, a point also clearly subscribed to by Harris. Consequently, the contributors are agreed that the usefulness of the existing literature is severely constrained when it comes to drawing up policy relevant conclusions.

Note: Copyright 2012, Oxford University Press.

Suggested Citation

Ajakaiye, Olu and Tarp, Finn, Finance and Economic Development in Africa: Introduction and Overview (December 2012). Journal of African Economies 21(suppl_1):3-9. DOI: 10.1093/jae/ejr048, Available at SSRN: https://ssrn.com/abstract=2537328

Olu Ajakaiye

Independent ( email )

Finn Tarp (Contact Author)

University of Copenhagen - Department of Economics ( email )

Øster Farimagsgade 5
Bygning 26
1353 Copenhagen K.
Denmark

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