Artikel

The impact of financial liberalization on economic growth in sub-Saharan Africa

This study examines the impact of financial liberalization on economic growth, given the discrepancy and the gap in the literature, using a sample of 30 sub-Saharan African (SSA) countries. The study applies a dynamic panel estimation to examine the special role of financial liberalization and banking crises on economic growth in SSA. The linear generalized method of moments is estimated according to the Arellano and Bover approach. We also examine whether differences in income levels across countries in sub-Saharan Africa will affect the relative impact of financial liberalization in SSA. Our findings indicate that the coefficient of the financial liberalization variable is positive and significant for SSA. However, the financial liberalization dummy sign changed to negative for low-income countries, even though it was statistically insignificant. The results also show that there is a negative relationship between a banking crisis and economic growth, showing that the period of a banking crisis can drastically affect economic growth in sub-Saharan Africa. Considering the crucial role played by most financial intermediaries in developing countries, the results have some implications for different African countries, especially countries whose economies are still undergoing financial reforms.

Language
Englisch

Bibliographic citation
Journal: Cogent Economics & Finance ; ISSN: 2332-2039 ; Volume: 5 ; Year: 2017 ; Issue: 1 ; Pages: 1-11 ; Abingdon: Taylor & Francis

Classification
Wirtschaft
Financial Markets and the Macroeconomy
Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
Monetary Policy
Financial Econometrics
Subject
financial liberalization
economic growth
panel analysis

Event
Geistige Schöpfung
(who)
Akinsola, Foluso A.
Odhiambo, Nicholas M.
Event
Veröffentlichung
(who)
Taylor & Francis
(where)
Abingdon
(when)
2017

DOI
doi:10.1080/23322039.2017.1338851
Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Artikel

Associated

  • Akinsola, Foluso A.
  • Odhiambo, Nicholas M.
  • Taylor & Francis

Time of origin

  • 2017

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