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Finance and Growth in Africa: The Broken Link

By Panicos O. Demetriades and Gregory A. James


Utilizing the latest panel cointegration methods\ud we provide new empirical evidence from 18 countries that\ud suggests that the link between finance and growth in Sub-\ud Saharan Africa is ‘broken’. Specifically, our findings suggest that\ud banking system development in this region follows economic\ud growth. They also indicate that there is no link between bank\ud credit and economic growth

Topics: Panel cointegration, cross-sectional dependence, African financial under-development, African credit markets
Publisher: Dept. of Economics, University of Leicester
Year: 2011
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