Financial development and total factors productivity channel: Evidence from Africa
| Main Authors: | EZZAHID, Elhadj, ELOUAOURTI, Zakaria |
|---|---|
| Format: | Book application/pdf Journal |
| Terbitan: |
UI Scholars Hub
, 2018
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| Subjects: | |
| Online Access: |
https://scholarhub.ui.ac.id/icmr/vol10/iss2/1 https://scholarhub.ui.ac.id/cgi/viewcontent.cgi?article=1098&context=icmr |
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.