IDEAS home Printed from https://ideas.repec.org/h/spr/aaechp/978-3-030-46482-0_8.html
   My bibliography  Save this book chapter

Financial Sector Development and Economic Growth: The Case of ECOWAS Countries

In: Financing Africa’s Development

Author

Listed:
  • Ibrahima Camara

    (Central Bank of the Republic of Guinea (BCRG)

  • Ibrahima Diallo

    (West African Monetary Institute (WAMI))

Abstract

This paper empirically investigates the change in the relationship between economic growth and financial development as ECOWAS economies grow over the period 1991–2017. The methodology of analysis is the quantile regression, which allows determining the impact of financial development at different levels of economic growth. Financial development is measured by private sector credit to GDP and liquid liabilities to GDP. The results indicate that financial development plays a positive and significant role in economic growth process regardless of the level of economic development. The size of the impact of financial development depends on its measure as well as the specification of the model. Our findings also indicate that the impact of finance increases with the level of economic growth between the 10th and the 90th percentile. Moreover, when country fixed effects are taken into consideration, the impact of finance rises significantly at the lowest percentiles of economic development, while it remains relatively stable at medium and high levels of economic development. Finally, the findings point out the absence of linearity in the linkage between finance and economic growth.

Suggested Citation

  • Ibrahima Camara & Ibrahima Diallo, 2020. "Financial Sector Development and Economic Growth: The Case of ECOWAS Countries," Advances in African Economic, Social and Political Development, in: Diery Seck (ed.), Financing Africa’s Development, pages 135-154, Springer.
    • Handle: RePEc:spr:aaechp:978-3-030-46482-0_8
    DOI: 10.1007/978-3-030-46482-0_8
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:aaechp:978-3-030-46482-0_8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.