financial development

Financial sector development, economic volatility and shocks in sub-Saharan Africa

The role of financial sector development in economic volatility has been extensively studied albeit without informative results largely on the failure of extant studies to decompose volatility into its various components. By disaggregating volatility, this study examines the effect of financial development on volatility as well as channels through which finance affects volatility components in 23 sub-Saharan African countries over the period 1980–2014 using the newly developed panel cointegration estimation strategy.

Spatial Externalities, Openness and Financial Development in SADC: Beyond the Multilateral Monetary Agreement

This study empirically evaluates spatial externalities in financial development in SADC in line with spatial proximity theory, which asserts that externalities increase with proximity. Precisely, the study tests if financially less developed economies in SADC benefit from linkages with and proximity to South Africa, a financially developed economy. The Spatial Durbin Model estimated using GMM and Dynamic Panel Estimations, establishes that financial development in the SADC region is sensitive to space and hence not immune to spatial externalities.

Financial Reforms and the Finance – Growth Relationship in the Southern African Development Community (SADC)

This study seeks to establish the casual relationship between financial development and economic growth in the SADC region, factoring-in the role of financial reforms. Utilising Generalised Methods of Moments (GMM) and Panel Fixed Effects estimations, the study established that financial development has a negative effect on growth in SADC. Underdeveloped financial systems, structure and distribution of credit in the SADC countries and strong country heterogeneity factors are possible explanations to the relationship obtained.

Financial development and income inequality in Africa: A panel heterogeneous approach

Although the financial sector of Africa has witnessed massive reforms to enhance its ability to support economic activities, reduce poverty and lower income inequality, Africa remains the poorest region and the second most unequal region in the world after Latin America. Despite these established facts, little empirical research exists on the relationship between financial development and income inequality in Africa.

Financial sector development and threshold effect of inflation in ECOWAS and SADC: A Panel smooth transition regression approach

The financial sector of an economy is now widely agreed to constitute a potential important channel for growth. Many regions such as Sub-Saharan Africa, however, have relatively underdeveloped financial sector. Although several policy designs have been used to induce growth in the sector, there has been little or no success in the majority of the countries in the region. Existing theories suggest that inflation has negative effects on financial development. Other theories argue that inflation has a threshold effects on financial development.

Financial sector development, Inflation and Openness: A comparative panel study of ECOWAS and SADC

This paper provides an empirical analysis of the comparative study between the Economic Community of West African States (ECOWAS) and Southern African Development Community (SADC) on the role of inflation in explaining the state of financial development of the two regions. In addition, the study seeks to
Subscribe to RSS - financial development