Empirical Research on Financial Efficiency and Economic Growth in Sub-Saharan Africa : WestminsterResearch

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Title	Empirical Research on Financial Efficiency and Economic Growth in Sub-Saharan Africa
Authors	Nigo, A. and Gibogwe, V.
Description	This study contributes to the literature on financial efficiency and growth. Given the increase in domestic credit, we show evidence of the effects of controlling institutional variables. The domestic credit is adverse, with an insignificant effect on per capita income growth. We make two observations from our findings. First, the negative but insignificant coefficients of the measure of bank credit across all model specifications seem to go against the supply-leading hypothesis, as financial development hurts economic growth; nevertheless, given that the impact is insignificant, this draws more into a neutrality hypothesis of no effect. Second, the findings are likely indications of the underdeveloped state of sub-Saharan Africa's financial system, implying that the present state of the financial systems is not robust enough to be a contributory drive towards enhancing economic growth in the region. However, all models have positive control variables (Inflation and gross fixed capital formation). All coefficients of interactions between credit and institutional quality are statistically insignificant (negative in four of six models).
Year	20 Jan 2023
Output media	Munich Personal RePEc Archive
Publisher	MPRA
Published	20 Jan 2023

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Foreign Direct Investment and Economic Growth in Southern African Development Community
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Empirical Research on Financial Efficiency and Economic Growth in Sub-Saharan Africa
Gibogwe, V., Nigo, A. and Kufuor, K. 2022. Empirical Research on Financial Efficiency and Economic Growth in Sub-Saharan Africa. Journal of Research, Innovation and Technologies. 1 (1), pp. 23-32. https://doi.org/10.57017/jorit.v1.1(1).02

Institutional Quality and Economic Growth in Tanzania
Gibogwe, V., Nigo, A. and Kufuor, K. 2022. Institutional Quality and Economic Growth in Tanzania. Journal of Research, Innovation and Technologies. 1 (2), pp. 141-154. https://doi.org/10.57017/jorit.v1.2(2).04

Foreign Direct Investment and Economic Growth in Southern African Development Community
Nigo, A. 2022. Foreign Direct Investment and Economic Growth in Southern African Development Community. Journal of Applied Economic Sciences. 17 (4), pp. 351-364.

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Empirical Research on Financial Efficiency and Economic Growth in Sub-Saharan Africa

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