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Financial Development And Innovationled Economic Growth: Empirical Insight From Sub-Saharan Africa

Author

Listed:
  • Adamu Jibir
  • Hassan Zada
  • Musa Abdu
  • Naveed Khan

Abstract

The body of literature on the nexus concerning innovation, the development of financial systems, and economic growth has gained increasing attention in recent times. However, it is observed that the majority of studies are conducted in developed and emerging economies. This study is unique in its own right by exploring the effect of innovation and financial development on economic growth using panel data for 30 sub-Saharan Africa (SSA) countries from 2001–2018. The study employed symmetric panel ARDL, common correlated effect ARDL, and asymmetric panel ARDL. Our empirical findings revealed a long-run effect of innovation and financial development on the economic growth of SSA. This means that expansion of the financial sector and better innovation activities in SSA stimulate long-term economic growth. Robustness tests provided consistent results with the baseline findings. The study therefore recommends that to promote sustained economic growth and development in the region, policy makers must collectively work in close collaboration with relevant stakeholders in enhancing regional financial reforms and innovative activities.

Suggested Citation

  • Adamu Jibir & Hassan Zada & Musa Abdu & Naveed Khan, 2023. "Financial Development And Innovationled Economic Growth: Empirical Insight From Sub-Saharan Africa," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 68(237), pages 97-136, April – J.
    • Handle: RePEc:beo:journl:v:68:y:2023:i:237:p:97-136
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    More about this item

    Keywords

    economic growth; innovation; financial development; sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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