Financial development and economic growth in sub-Saharan Africa: A sectoral perspective

dc.contributor.authorUstarz, Yaziduen_ZA
dc.contributor.authorFanta, Ashenafi Beyeneen_ZA
dc.date.accessioned2022-11-22T13:36:53Z
dc.date.available2022-11-22T13:36:53Z
dc.date.issued2021-06-07
dc.descriptionCITATION: Yazidu Ustarz & Ashenafi Beyene Fanta | (2021) Financial development and economic growth in sub-Saharan Africa: A sectoral perspective, Cogent Economics & Finance, 9:1,1934976, doi: 10.1080/23322039.2021.1934976en_ZA
dc.descriptionThe original publication is available at: tandfonline.comen_ZA
dc.description.abstractResearch on the impact of financial development on economic growth remains inconclusive. Previous empirical examination of the link is based on aggregate GDP on the presumption that each economic sector responds identically to financial development. However, the extent of credit utilisation, as well as productivity of credit, may not necessarily remain the same across sectors. This study therefore seeks to contribute to the literature by examining the effect of financial development across sectors in sub-Saharan Africa using the Generalised Method of Moments (GMM) over the period 1990–2018. Indeed, the findings show that while financial development has a positive effect on the service and agricultural sectors, a certain threshold of financial development must be reached before it can positively contribute to the growth of the industrial sector. The findings are robust to a different estimation technique. With the industrial sector considered critical for economic transformation, our findings imply that policymakers in sub- Saharan Africa need to continue to promote financial development to spur industrialization.en_ZA
dc.description.versionPublisher’s versionen_ZA
dc.format.extent22 Pagesen_ZA
dc.identifier.citationYazidu Ustarz & Ashenafi Beyene Fanta | (2021) Financial development and economic growth in sub-Saharan Africa: A sectoral perspective, Cogent Economics & Finance, 9:1,1934976, doi: 10.1080/23322039.2021.1934976en_ZA
dc.identifier.issn2332-2039 (Online)en_ZA
dc.identifier.otherdoi: 10.1080/23322039.2021.1934976en_ZA
dc.identifier.urihttp://hdl.handle.net/10019.1/125798
dc.language.isoen_ZAen_ZA
dc.publisherTaylor & Francis Groupen_ZA
dc.rights.holderOpen Access journalen_ZA
dc.subjectFinancial developmenten_ZA
dc.subjectThresholden_ZA
dc.subjectGeneralised method of momentsen_ZA
dc.subjectSeemingly unrelated regressionen_ZA
dc.subjectsub-Saharan Africaen_ZA
dc.titleFinancial development and economic growth in sub-Saharan Africa: A sectoral perspectiveen_ZA
dc.typeArticleen_ZA
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