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Financial Development and Growth: A Positive, Monotonic Relationship? Empirical Evidences from South Africa

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  • Jalil, Abdul
  • Wahid, Abu N. M.
  • Shahbaz, Muhammad

Abstract

The objective of this article is to investigate the relationship between development of the financial sector and economic growth for South Africa. For this purpose, we data for 1965-2007 and set the estimation strategy under the ARDL framework. Importantly, four indicators for the financial developments are utilized to accomplish our tasks. We find a positive monotonic relationship between financial development and economic growth for South Africa. Trade openness and per capita real capital are found as the other important determinants of economic growth in South Africa.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 27668.

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Date of creation: 24 Dec 2010
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Handle: RePEc:pra:mprapa:27668

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Keywords: Financial Development; Trade; Growth; South Africa; ARDL; Monotonic relationship;

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Cited by:
  1. Asongu Simplice, 2013. "Finance and growth: New evidence from Meta-analysis," Working Papers 13/029, African Governance and Development Institute..
  2. Asongu Simplice, 2013. "Finance and growth: Schumpeter might be wrong in our era. New evidence from Meta-analysis," Working Papers 13/009, African Governance and Development Institute..

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