Arbeitspapier

Linkages between financial development, financial instability, financial liberalisation and economic growth in Africa

In the aftermath of the 2008 global financial crisis, the implications of financial liberalisation for stability and economic growth has come under increased scrutiny. One strand of literature posits a positive relationship between financial liberalisation and economic growth and development. However, others emphasise the link between financial liberalisation is intrinsically associated with financial instability which may be harmful to economic growth and development. This study assesses linkages between financial instability, financial liberalisation, financial development and economic growth in 41 African countries for the period 1985-2010. The results suggest that financial development and financial liberalisation have positive effects on financial instability. The findings also reveal that economic growth reduces financial instability and the magnitude of reduction is higher in the pre-liberalisation period compared to post-liberalisation period.

Language
Englisch

Bibliographic citation
Series: AGDI Working Paper ; No. WP/17/030

Classification
Wirtschaft
Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors
Economywide Country Studies: Africa
Subject
Economic Growth
Financial Development
Financial instability and Africa

Event
Geistige Schöpfung
(who)
Batuo, Enowbi
Mlambo, Kupukile
Asongu, Simplice
Event
Veröffentlichung
(who)
African Governance and Development Institute (AGDI)
(where)
Yaoundé
(when)
2017

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Batuo, Enowbi
  • Mlambo, Kupukile
  • Asongu, Simplice
  • African Governance and Development Institute (AGDI)

Time of origin

  • 2017

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