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Industrialisation, Finance, and Urbanisation in Africa

Author

Listed:
  • Oluwatosin Adeniyi

    (University of Ibadan, Nigeria)

  • Oludele Folarin

    (University of Ibadan, Nigeria)

Abstract

This study investigated two key questions: what is the impact of industrialisation on urbanisation in Africa? and to what extent does financial development affect this industrialisation- urbanisation nexus? To elicit answers to these questions, data from thirty-three (33) African countries over a period of twenty-eight (28) years were analysed using a dynamic panel estimator. The findings showed that industrialisation had positive and significant effects on urbanisation. Further, the study shows that financial development had a positive effect on urbanisation, although it lowers the positive effect of industrialisation on urbanisation. Hence, industrial policies, particularly those with marked job creation possibilities, should be accompanied by well-designed urban planning policies in order to sidestep the adverse socio-economic consequences connected with the development of slums in urban areas.

Suggested Citation

  • Oluwatosin Adeniyi & Oludele Folarin, 2023. "Industrialisation, Finance, and Urbanisation in Africa," Working Papers of the African Governance and Development Institute. 23/065, African Governance and Development Institute..
    • Handle: RePEc:agd:wpaper:23/065
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Urbanisation; Industrialisation; Financial Development; Africa;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • N17 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Africa; Oceania

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