Non-bank financial institutions and economic growth : evidence from Africa’s three largest economies

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dc.contributor.authorRateiwa, Ronalden_ZA
dc.contributor.authorAziakpono, Meshach J.en_ZA
dc.date.accessioned2018-12-10T07:23:07Z
dc.date.available2018-12-10T07:23:07Z
dc.date.issued2017
dc.descriptionCITATION: Rateiwa, R. & Aziakpono, M. J. 2017. Non-bank financial institutions and economic growth : evidence from Africa’s three largest economies. South African Journal of Economic and Management Sciences, 20(1):a1545, doi:10.4102/sajems.v20i1.1545.
dc.descriptionThe original publication is available at https://sajems.org
dc.description.abstractBackground: In order for the post-2015 world development agenda – termed the sustainable development goals (SDGs) – to succeed, there is a pronounced need to ensure that available resources are used more effectively and additional financing is accessed from the private sector. Given that traditional bank lending has slowed down, the development of non-bank financing has become imperative. To this end, this article intends to empirically test the role of non-bank financial institutions (NBFIs) in stimulating economic growth. Aim: The aim of this article is to empirically test the existence of a long-run equilibrium relationship between economic growth and the development of NBFIs, and the causality thereof. Setting: The empirical assessment uses time-series data from Africa’s three largest economies, namely, Egypt, Nigeria and South Africa, over the period 1971–2013. Methods: This article uses the Johansen cointegration and vector error correction model within a country-specific setting. Results: The results showed that the long-run relationship between NBFI development and economic growth is relatively stronger in Egypt and South Africa, than in Nigeria. Evidence in respect of Nigeria shows that such a relationship is weak. The nature of the relationship between NBFI development and economic growth in Egypt is positive and significant, and predominantly bidirectional. This suggests that a virtuous relationship between NBFIs and economic growth exists in Egypt. In South Africa, the relationship is positive and significant and predominantly runs from NBFI development to economic growth, implying a supply-leading phenomenon. In Nigeria, the results are weak and mixed. Conclusion: The study concludes that in countries with more developed financial systems, the role of NBFIs and their importance to the economic growth process are more pronounced. Thus, there is need for developing policies targeted at developing the NBFI sector, given their potential to contribute to economic growth.en_ZA
dc.description.urihttps://sajems.org/index.php/sajems/article/view/1545
dc.description.versionPublisher's version
dc.format.extent11 pages ; illustrations
dc.identifier.citationRateiwa, R. & Aziakpono, M. J. 2017. Non-bank financial institutions and economic growth : evidence from Africa’s three largest economies. South African Journal of Economic and Management Sciences, 20(1):a1545, doi:10.4102/sajems.v20i1.1545
dc.identifier.issn2222-3436 (online)
dc.identifier.issn1015-8812 (print)
dc.identifier.otherdoi:10.4102/sajems.v20i1.1545
dc.identifier.urihttp://hdl.handle.net/10019.1/105243
dc.language.isoen_ZAen_ZA
dc.publisherAOSIS Publishing
dc.rights.holderAuthors retain copyright
dc.subjectNonbank financial institutions -- Economic aspects -- South Africaen_ZA
dc.subjectNonbank financial institutions -- Economic aspects -- Egypten_ZA
dc.subjectNonbank financial institutions -- Economic aspects -- Nigeriaen_ZA
dc.subjectEconomic development -- South Africaen_ZA
dc.subjectEconomic development -- Egypten_ZA
dc.subjectEconomic development -- Nigeriaen_ZA
dc.titleNon-bank financial institutions and economic growth : evidence from Africa’s three largest economiesen_ZA
dc.typeArticleen_ZA
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