Financial development and total factors productivity channel: Evidence from Africa
| Main Authors: | Elhadj EZZAHID; Faculty of Law and Economics, Mohammed V University Rabat, Zakaria ELOUAOURTI; Department of Economics, Laboratory of Applied Economics |
|---|---|
| Format: | application/pdf eJournal |
| Bahasa: | eng |
| Terbitan: |
Management Research Center, Department of Management, Faculty of Economics and Business, U
, 2019
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| Subjects: | |
| Online Access: |
http://journal.ui.ac.id/index.php/icmr/article/view/10827 |
Daftar Isi:
- We discuss the link between financial development and economic growth through Total Factor Productivity (TFP) canal in African economies. First, we use a composite index to hierarchize financial development in 40 African countries. Then, we study this relationship by using the methodology of panel data based on the Breusch-Pagan LM Test and Hausman Test, to determine the nature of the specific effect, in a panel of 22 economies. The main results of our study show that the development of the financial sector does not promote total factors productivity in low-income and upper-middle-income countries. For the lower middle-income countries, the Finance-TFP relation- ship is significantly positive. The reforms of African financial systems should be designed and directed to increase the adequacy of financial services with the needs of each economy.