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Exploring the Drivers of Economic Growth in Sub-Saharan Africa: The Interactive Effect of Globalization and Financial Development

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  • Yakubu, Ibrahim Nandom

Abstract

This study investigates how globalization and financial development interactively stimulate economic growth in Sub-Saharan Africa (SSA). The author employs annual data spanning from 2000 to 2017 for 30 Sub-Saharan African countries and applies the generalized method of moments (GMM) technique. The results show that while globalization significantly reduces economic growth, the impact of financial development on growth is positive when examined independently. With the interactive effect of globalization and financial development, a positive and statistically significant impact is documented. The study further reveals that trade openness significantly enhances growth while inflation inhibits growth. In light of the findings, the author presents key policy recommendations.

Suggested Citation

  • Yakubu, Ibrahim Nandom, 2022. "Exploring the Drivers of Economic Growth in Sub-Saharan Africa: The Interactive Effect of Globalization and Financial Development," MPRA Paper 115230, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:115230
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    References listed on IDEAS

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    Cited by:

    1. Muhammad Suhail Saleem & Asad Abbas & Dr Muhammad Ramzan Sheikh & Sana Sultan, 2024. "Financial Development in the SAARC Region: Identifying Influential Factors," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(2), pages 513-525.

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    More about this item

    Keywords

    Globalization; Financial development; Economic growth; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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