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Integration of financial markets, financial development and growth: Is Africa different?

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  • Ahmed, Abdullahi D.

Abstract

This study uses a dynamic system GMM model and panel data of 30 Sub-Saharan African (SSA) countries from 1976 to 2010 to investigate the impact of international financial integration (IFI) on economic performance. While also examining both the direct and indirect channels through which the effect of financial integration works, our research considers the tripartite relationship between financial openness, financial market development and economic growth. We test the simultaneous openness hypothesis of Rajan and Zingales and examine joint influence of both capital and trade openness on financial development in the region.

Suggested Citation

  • Ahmed, Abdullahi D., 2016. "Integration of financial markets, financial development and growth: Is Africa different?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 42(C), pages 43-59.
    • Handle: RePEc:eee:intfin:v:42:y:2016:i:c:p:43-59
    DOI: 10.1016/j.intfin.2016.01.003
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