Banking development, human capital and economic growth in Sub-Saharan Africa (SSA)
AbstractPurpose – The purpose of this paper is to investigate the relevance of three economic growth theories in Sub-Saharan Africa economies. Design/methodology/approach – This empirical paper employs a panel data framework, using fixed effect, random effects and maximum likelihood estimation techniques. It further conducts some sensitivity analyses. Findings – The paper finds that both the stock of human capital (HC) and the physical capital are important for growth in the region, the paper does not find strong impact of financial development (FD) in the region, perhaps due to long period of financial repression or financial underdevelopment in the region. It however finds strong complementarity features in interaction of both finance and HC on growth. Research limitations/implications – The analysis in the paper is confined to banking development indicators, due to inadequate data for capital market indicators as well as underdevelopment of the stock market in the region. Practical implications – The policy regime since the mid-1980?s (Structural Adjustment Programme, SAP, era) is to reduce government investment and involvement in economic activities; this paper however suggests that this measure has to be carefully considered especially with due concern for the trade off between short-run adjustment programmes and long-run stabilisation policies. The paper advocates for more efficient and effective investment in HC and FD in the region. Originality/value – It is believed that this is the first time such a study has been carried out, testing the relevance of three growth theories
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Emerald Group Publishing in its journal Journal of Economic Studies.
Volume (Year): 37 (2010)
Issue (Month): 5 (September)
Contact details of provider:
Web page: http://www.emeraldinsight.com
Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Harris).
If references are entirely missing, you can add them using this form.