Is financial development shaping or shaking economic sophistication in African countries?

Arbeitspapier

This paper aims to investigate the effect of financial development on economic complexity using a panel dataset of 24 African countries over the period 1983-2017. The empirical evidence is based on two different approaches. First, we adopt the Hoechle (2007) procedure which produces Driscoll-Kraay standard errors to account for heteroscedasticity and cross-sectional dependence. Second, we implement the system Generalized Method of Moments to account for endogeneity. The results show that financial development increases economic complexity in Africa. Looking at the regional difference, the results show that this effect is less beneficial for SSA countries.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: AGDI Working Paper ; No. WP/21/018

Classification and Topics

• Classification: Wirtschaft ; Financial Institutions and Services: General ; Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies ; Institutions and the Macroeconomy ; Capitalist Systems: Property Rights ; Economywide Country Studies: Africa
• Subject: Financial development ; Economic complexity ; Panel data analysis ; Africa

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ndieupa, Henri Njangang ; Asongu, Simplice ; Tadadjeu, Sosson ; Nounamo, Yann
• Event: Veröffentlichung
• (who): African Governance and Development Institute (AGDI)
• (where): Yaoundé
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/244193
• Last update: 10.03.2025, 11:44 AM CET