Financial Development and Economic Growth in SSA: A Panel Econometric Approach

Abstract

In this study, we examine the long run relationship between financial development andeconomic growth in 24 Sub-Saharan countries in Africa. The study explores the spatial impactin explaining the relationship. We examine the stationarity and weak exogeneity of thevariables in the cointegrating vector to determine the causal relationship. The paper supportsliterature with evidences suggesting a causal relationship between finance and growth as wereject the null hypothesis of no cointegration relationship among the variables for all thedifferent financial development indicators used.