Financial Development and Economic Growth: Evidence from Low-Income Nations in the SADC Region

被引:1
|
作者
Mlambo, Courage [1 ]
机构
[1] Independent Inst Educ, Fac Commerce, ZA-1724 Johannesburg, South Africa
来源
INTERNATIONAL JOURNAL OF FINANCIAL STUDIES | 2024年 / 12卷 / 03期
关键词
financial development; economic growth; financial system; finance-induced turmoil; capital accumulation; low-income countries; ENERGY-CONSUMPTION; CAUSALITY; GOVERNMENT; MARKETS; IMPACT;
D O I
10.3390/ijfs12030062
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
The study sought to examine the relationship between financial development and economic growth in low-income nations in the SADC region. Motivated by the observation that numerous states in the SADC region lack adequately developed financial systems, this investigation was undertaken. Many SADC states are low-income countries, and they remain financially underdeveloped, which could compromise their growth prospects. The analysis was quantitative in nature, and used panel data to achieve its objectives. The data period spanned from 2000 to 2022. The dynamic common correlated effects (DCCE) technique was used for estimation purposes. Results showed that there is a positive relationship between financial development and economic growth. The relationship was also found to be causal: financial development is not only a result of economic growth; it also influences growth. The evidence from the findings supports the notion that financial development is needed to increase the effectiveness of resource allocation and consequently promote growth. This calls on the governments in the countries under investigation to create environments that foster financial development.
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页数:16
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