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Financial Sector Reforms And Private Investment In Sub-Saharan African Countries

Author

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  • Babajide Fowowe

    () (Department of Economics, University of Ibadan)

Abstract

Financial sector reforms have been undertaken by many countries in Sub-Saharan Africa and one of the key targets of these reforms has been investment. This study conducts an empirical investigation of the effect of financial sector reforms on private investment in selected Sub-Saharan African countries. An index is developed which tracks the gradual progress made with implementation of the phases of the reforms. The results of econometric estimations show that financial sector reforms (measured by the index) have had a positive effect on private investment in the selected countries, thus offering support to the financial liberalization hypothesis.

Suggested Citation

  • Babajide Fowowe, 2011. "Financial Sector Reforms And Private Investment In Sub-Saharan African Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(3), pages 79-97, September.
  • Handle: RePEc:jed:journl:v:36:y:2011:i:3:p:79-97
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    References listed on IDEAS

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    8. Demetriades, Panicos O & Luintel, Kul B, 1996. "Financial Development, Economic Growth and Banker Sector Controls: Evidence from India," Economic Journal, Royal Economic Society, vol. 106(435), pages 359-374, March.
    9. Ndikumana, Leonce, 2000. "Financial Determinants of Domestic Investment in Sub-Saharan Africa: Evidence from Panel Data," World Development, Elsevier, vol. 28(2), pages 381-400, February.
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    Citations

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    Cited by:

    1. Daniel Sakyi & Micheal Kofi Boachie & Mustapha Immurana, 2016. "Does Financial Development Drive Private Investment in Ghana?," Economies, MDPI, Open Access Journal, vol. 4(4), pages 1-12, December.
    2. Muyambiri, Brian & Odhiambo, Nicholas Mbaya, 2017. "Investment dynamics in Mauritius:Does financial development matter?," Working Papers 22077, University of South Africa, Department of Economics.
    3. Anthony Orji & God'stime Osekhebhen Eigbiremolen & Jonathan Emenike Ogbuabor, 2014. "Impact of Financial Liberalization on Private Investment: Empirical Evidence from Nigerian Data," Review of Economics & Finance, Better Advances Press, Canada, vol. 4, pages 77-86, May.
    4. Adeniyi, Oluwatosin & Oyinlola, Abimbola & Omisakin, Olusegun & Egwaikhide, Festus O., 2015. "Financial development and economic growth in Nigeria: Evidence from threshold modelling," Economic Analysis and Policy, Elsevier, vol. 47(C), pages 11-21.
    5. repec:rss:jnljfe:v3i1p3 is not listed on IDEAS
    6. Maame Esi Eshun & George Adu & Emmanuel Buabeng, 2014. "The Financial Determinants of Private Investment in Ghana," International Journal of Financial Economics, Research Academy of Social Sciences, vol. 3(1), pages 25-40.

    More about this item

    Keywords

    Private Investment; Financial Sector Reforms; Sub-Saharan Africa;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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