The impact of financial development on economic growth has received much attention in recent literature. However, there are potential discontinuities mediating finance–growth nexus that existing empirical studies have not rigorously examined. This study investigates whether the impact of finance on economic growth is conditioned on the initial levels of countries’ income per capita, human capital and financial development for 29 sub–Saharan Africa countries over the period 1980–2014 using a sample splitting and threshold estimation technique.
Current Account Adjustment; Short-term Capital Movements
The debate on global current account imbalances continues to develop, with growing interest in the macroeconomic instability and widening current account de cits faced by emerging markets.