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


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


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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  • Jalil, Abdul & Wahid, Abu N. M. & Shahbaz, Muhammad, 2010. "Financial Development and Growth: A Positive, Monotonic Relationship? Empirical Evidences from South Africa," MPRA Paper 27668, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:27668

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    Cited by:

    1. Simplice A. Asongu, 2015. "Finance and growth: new evidence from meta-analysis," Managerial Finance, Emerald Group Publishing, vol. 41(6), pages 615-639, June.
    2. Simplice A, Asongu, 2011. "Finance and growth: Schumpeter might be wrong in our era. New evidence from Meta-analysis," MPRA Paper 32559, University Library of Munich, Germany, revised 07 Feb 2013.

    More about this item


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

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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