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Financial sector development, economic volatility and shocks in sub-Saharan Africa

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  • Muazu Ibrahim
  • Paul Alagidede

Abstract

The role of financial sector development in economic volatility has been extensively studied albeit without informative results largely on the failure of extant studies to decompose volatility into its various components. By disaggregating volatility, this study examines the effect of financial development on volatility as well as channels through which finance affects volatility components in […]

Suggested Citation

  • Muazu Ibrahim & Paul Alagidede, 2016. "Financial sector development, economic volatility and shocks in sub-Saharan Africa," Working Papers 648, Economic Research Southern Africa.
    • Handle: RePEc:rza:wpaper:648
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    References listed on IDEAS

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    Cited by:

    1. Ibrahim, Muazu & Alagidede, Paul, 2018. "Nonlinearities in financial development–economic growth nexus: Evidence from sub-Saharan Africa," Research in International Business and Finance, Elsevier, vol. 46(C), pages 95-104.
    2. Emmanuel Kumi & Muazu Ibrahim & Thomas Yeboah, 2017. "Aid, Aid Volatility and Sectoral Growth in Sub-Saharan Africa: Does Finance Matter?," Journal of African Business, Taylor & Francis Journals, vol. 18(4), pages 435-456, October.
    3. Babar Hussain & Muhammad Naveed Tahir & Bahawal Khan, 2022. "Impact of Financial Development, Financial Liberalization and Economic Growth on Financial Instability: Evidence from Panel Data," Journal of Economic Impact, Science Impact Publishers, vol. 4(2), pages 142-151.
    4. Zouaoui, Haykel & Mazioud, Manel & Ellouz, Nidhal Ziedi, 2018. "A semi-parametric panel data analysis on financial development-economic volatility nexus in developing countries," Economics Letters, Elsevier, vol. 172(C), pages 50-55.
    5. Yakubu Awudu Sare, 2021. "Threshold Effects of Financial Sector Development on International Trade in Africa," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 515-541, January.
    6. Ibrahim, Muazu, 2020. "Effects of trade and financial integration on structural transformation in Africa: New evidence from a sample splitting approach," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 556(C).
    7. Gnangnon, Sèna Kimm, 2023. "Effect of the duration of membership in the GATT/WTO on economic growth volatility," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 448-467.
    8. Chima Igwe-Kalu & Barnabas Olusegun Obasaju, 2020. "Output Volatility in Nigeria: Does Financial Development Absorb Trade-Led Shocks?," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 10(2), pages 66-78.
    9. Menyelim M. Chima & Abiola Ayopo Babajide & Alex Adegboye & Segun Kehinde & Oluwatobi Fasheyitan, 2021. "The Relevance of Financial Inclusion on Sustainable Economic Growth in Sub-Saharan African Nations," Sustainability, MDPI, vol. 13(10), pages 1-20, May.
    10. Hui An & Qianmiao Zou & Mohamed Kargbo, 2021. "Impact of financial development on economic growth: Evidence from Sub‐Saharan Africa," Australian Economic Papers, Wiley Blackwell, vol. 60(2), pages 226-260, June.
    11. MALATA, Alain K. & PINSHI, Christian P., 2020. "Système financier et COVID-19 : Un examen de l’impact en RDC [Financial system and COVID-19: A review of the impact in the DRC]," MPRA Paper 107772, University Library of Munich, Germany.
    12. Chor Foon Tang & Salah Abosedra, 2020. "Does Financial Development Moderate the Effects on Growth Volatility? The Experience of Malaysia," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 14(4), pages 361-381, November.
    13. Xue, Wen-Jun, 2020. "Financial sector development and growth volatility: An international study," International Review of Economics & Finance, Elsevier, vol. 70(C), pages 67-88.
    14. Ibrahim, Muazu & Alagidede, Paul, 2018. "Effect of financial development on economic growth in sub-Saharan Africa," Journal of Policy Modeling, Elsevier, vol. 40(6), pages 1104-1125.
    15. Ibrahim, Muazu & Sare, Yakubu Awudu, 2018. "Determinants of financial development in Africa: How robust is the interactive effect of trade openness and human capital?," Economic Analysis and Policy, Elsevier, vol. 60(C), pages 18-26.
    16. Dennis Boahene Osei & Yakubu Awudu Sare & Muazu Ibrahim, 2019. "On the determinants of trade openness in low- and lower–middle-income countries in Africa: how important is economic growth?," Future Business Journal, Springer, vol. 5(1), pages 1-10, December.
    17. Md. Qamruzzaman & Ananda Bardhan & Summatun Nasya, 2020. "Nexus between Remittance, Nonperforming Loan, Money Supply, and Financial Volatility: An Application of ARDL," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 8(1), pages 11-29.
    18. Muazu Ibrahim & Yakubu Awudu Sare & Ibrahim Osman Adam, 2021. "An application of frequency domain approach to the causal nexus between information, communication and technology infrastructure and financial development in selected countries in Africa," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 1206-1235, January.
    19. Muazu Ibrahim & Paul Alagidede, 2018. "Nonlinearities in Financial Development–Economic Growth Nexus: Evidence from sub–Saharan Africa (SSA)," Working Papers 728, Economic Research Southern Africa.

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    More about this item

    Keywords

    Business Cycle; financial development; Financial Markets; Other Macroeconomic Variables; Risk and Uncertainty; shocks; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • G0 - Financial Economics - - General
    • G00 - Financial Economics - - General - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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