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Effect of Financial Development on Economic Growth in sub–Saharan Africa: Does Sectoral Growth Matter?

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  • Paul Alagidede

Abstract

This paper examines the overall economic growth effect when the growth in finance and real sector is disproportionate relying on panel data for 29 sub–Saharan African countries over the period 1980–2014. Results from the system generalized method of moments (GMM) reveal that, while financial development supports economic growth, the extent to which finance helps growth […]

Suggested Citation

  • Paul Alagidede, 2018. "Effect of Financial Development on Economic Growth in sub–Saharan Africa: Does Sectoral Growth Matter?," Working Papers 754, Economic Research Southern Africa.
    • Handle: RePEc:rza:wpaper:754
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    More about this item

    Keywords

    economic growth; financial development; investment;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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