Linkages between financial development, financial instability, financial liberalisation and economic growth in Africa

Enowbi Batuo, M., Mlambo, Kupukile and Asongu, Simplice 2018. Linkages between financial development, financial instability, financial liberalisation and economic growth in Africa. Research in International Business and Finance. 45, pp. 168-179. https://doi.org/10.1016/j.ribaf.2017.07.148

TitleLinkages between financial development, financial instability, financial liberalisation and economic growth in Africa
TypeJournal article
AuthorsEnowbi Batuo, M., Mlambo, Kupukile and Asongu, Simplice
Abstract

In the aftermath of the 2008 global financial crisis, the implications of financial liberalisation for stability and economic growth has come under increased scrutiny. One strand of literature posits a positive relationship between financial liberalisation and economic growth and development. However, others emphasise the link between financial liberalisation is intrinsically associated with financial instability which may be harmful to economic growth and development. This study assesses linkages between financial instability, financial liberalisation, financial development and economic growth in 41 African countries for the period 1985-2010. The results suggest that financial development and financial liberalisation have positive effects on financial instability. The findings also reveal that economic growth reduces financial instability and the magnitude of reduction is higher in the pre-liberalisation period compared to post-liberalisation period.

KeywordsEconomic Growth; Financial Development; Financial instability and Africa
JournalResearch in International Business and Finance
Journal citation45, pp. 168-179
ISSN0275-5319
Year2018
PublisherElsevier
Accepted author manuscript
Digital Object Identifier (DOI)https://doi.org/10.1016/j.ribaf.2017.07.148
Publication dates
Published in printOct 2018
Published online09 Jul 2017
LicenseCC BY-NC-ND 4.0

Related outputs

Variations in the determinants of regional development disparities in rural China
Zheng L., Shepherd, D. and Enowbi Batuo, M. 2021. Variations in the determinants of regional development disparities in rural China. Journal of Rural Studies. 82, pp. 29-36. https://doi.org/10.1016/j.jrurstud.2020.08.011

Is information diffusion a threat to market power for financial access? Insights from the African banking industry
Asongu, S., Enowbi Batuo, M., Nwachukwu, J. and Tchamyou, V. 2018. Is information diffusion a threat to market power for financial access? Insights from the African banking industry. Journal of Multinational Financial Management. 45, pp. 88-104. https://doi.org/10.1016/j.mulfin.2018.04.005

The Impact of Regional and Institutional Factors on Labour productive Performance: Evidence from the Township and Village Enterprise Sector in China
Zheng, L., Enowbi Batuo, M. and Shepherd, D. 2017. The Impact of Regional and Institutional Factors on Labour productive Performance: Evidence from the Township and Village Enterprise Sector in China. World Development. 96, pp. 591-598. https://doi.org/10.1016/j.worlddev.2017.04.006

The impact of liberalisation policies on poverty and inequality in African countries
Enowbi Batuo, M. and Asongu, S. 2015. The impact of liberalisation policies on poverty and inequality in African countries. Journal of Economic Studies. 42 (1), pp. 68-100. https://doi.org/10.1108/JES-05-2013-0065

The role of telecommunications infrastructure in the regional economic growth of Africa
Enowbi Batuo, M. 2015. The role of telecommunications infrastructure in the regional economic growth of Africa. Journal of Developing Areas. 49 (1), pp. 313-330. https://doi.org/10.1353/jda.2015.0005

The causal relationship between private and public investment in Zimbabwe
Muyambiri, B., Chiwira, O., Ngonidzashe, C. and Enowbi Batuo, M. 2012. The causal relationship between private and public investment in Zimbabwe. British Journal of Economics, Management & Trade. 2 (3), pp. 239-264. https://doi.org/10.9734/BJEMT/2012/1213#sthash.vRIGH6Eu.dpuf

Financial development and income inequality: evidence from African countries
Enowbi Batuo, M., Guidi, F. and Kupukile, M. 2011. Financial development and income inequality: evidence from African countries. African Development Bank Conference.

Testing the weak-form market efficiency and the day of the week effects of some African countries
Enowbi Batuo, M., Guidi, F. and Kupukile, M. 2010. Testing the weak-form market efficiency and the day of the week effects of some African countries. The African Finance Journal. 12, pp. 1-26.

The trade specialization of SANE: evidence from manufacturing industries
Enowbi Batuo, M. and Alessandrini, M. 2010. The trade specialization of SANE: evidence from manufacturing industries. The European Journal of Comparative Economics. 7 (1), pp. 145-178.

How can economic and political liberalisation improve financial development in African countries?
Enowbi Batuo, M. and Mlambo, K. 2009. How can economic and political liberalisation improve financial development in African countries? Journal of Financial Economic Policy. 2 (1), pp. 35-59.

Permalink - https://westminsterresearch.westminster.ac.uk/item/q162y/linkages-between-financial-development-financial-instability-financial-liberalisation-and-economic-growth-in-africa


Share this
Tweet
Email

Usage statistics

79 total views
174 total downloads
3 views this month
12 downloads this month
These values are for the period from September 2nd 2018, when this repository was created

Export as