IDEAS home Printed from https://ideas.repec.org/a/jle/journl/jlecon2588.html

The nexus between financial development and economic growth in the SADC region: Empirical evidence using ARDL-PMG estimation techniques

Author

Listed:
  • Ngonidzashe Chiranga

    (Tshwane University of Technology / South Africa)

Abstract

This study aims to provide empirical insights into the financial development and economic growth nexus in the SADC region by examining how much financial development translates to economic growth in the short or long run. Also, the examination of economic growth is impacted more by external or internal factors. Also, causality testing economic growth on financial development. The study applies the panel Autoregressive Distributive method (ARDL-PMG) on a panel data set of 11 SADC countries in the period 1998-2021. The study finds a negative and significant relationship between economic growth and financial development at a 1% level of significance in the long run whereas in the short run, the relationship is negative but not significant. Furthermore, the study findings suggest that economic growth in the SADC region is more influenced by external factors than internal factors as signified by the significant negative long-run influence of external debt and the significant positive influence of trade openness. On the other hand, financial development has a neutral impact on economic growth. The study recommends that SADC countries should embrace outward-looking policies as an avenue to learn new ideas from the world.

Suggested Citation

  • Ngonidzashe Chiranga, 2025. "The nexus between financial development and economic growth in the SADC region: Empirical evidence using ARDL-PMG estimation techniques," JOURNAL OF LIFE ECONOMICS, Holistence Publications, vol. 12(ongoing), pages 2588-2588.
    • Handle: RePEc:jle:journl:jlecon2588
    DOI: 10.15637/jlecon.2588
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jle:journl:jlecon2588. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mehmet SAHIN (email available below). General contact details of provider: https://journals.gen.tr/index.php/jlecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.