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Frequency domain causality analysis of financial development and economic growth in Côte d’Ivoire

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  • Brou Emmanuel AKA

    (Félix Houphouët-Boigny University, Abidjan, Côte d’Ivoire)

  • Yao Silvère KONAN

    (Félix Houphouët-Boigny University, Abidjan, Côte d’Ivoire)

Abstract

In this study, we revisit the finance-growth nexus in Côte d’Ivoire using annual data over the period 1962-2020. We utilize the novel frequency domain causality test to identify the direction of the causality at different frequencies. The results vary depending on the financial development indicator and the time horizon. First, there is evidence of insignificant causality relationship between broad money and real GDP per capita. Second, there is evidence of unidirectional causality running from real GDP per capita to both domestic credit to private sectors ratios, only for low frequencies, suggesting a permanent or long-run effect.

Suggested Citation

  • Brou Emmanuel AKA & Yao Silvère KONAN, 2023. "Frequency domain causality analysis of financial development and economic growth in Côte d’Ivoire," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(635), S), pages 163-182, Summer.
    • Handle: RePEc:agr:journl:v:2(635):y:2023:i:2(635):p:163-182
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