Financial Development, Institutional Quality and Economic Growth: Evidence from ECOWAS Countries

IF 0.9 Q3 ECONOMICS

Organizations and Markets in Emerging Economies Pub Date : 2020-05-29 DOI:10.15388/omee.2020.11.20

Michael Appiah, Fanglin Li, Doreen Idan Frowne

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引用次数: 18

Abstract

Most of the literature that explored the relationship between financial development and economic growth taking into consideration the roles played by institutional quality in the ECOWAS region still debates on the roles of institutional quality on economic growth. This study used data from 1996-2017 for 15 emerging economies within the ECOWAS by applying two-step SYS GMM (SGMM) estimators. The following conclusions were developed: first, the study discovered that financial development has no significant and positive impact on economic growth in the ECOWAS region. Secondly, regulatory quality and control of corruption, which are considered as institutional quality variables, have opposing results with control of corruption reducing growth as well as regulatory quality variable increasing growth. Again, the results indicate that capital formation has a positive association with growth and labor force influencing growth negatively. Finally, due to a lack of proper corruption control systems in the region and poor financial sector development, growth cannot improve.

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金融发展、制度质量与经济增长——来自西非经共体国家的证据

在西非经共体地区，大多数探讨金融发展与经济增长之间关系的文献都考虑了制度质量对经济增长的作用，但仍在讨论制度质量对经济增长的作用。本研究使用了西非经共体内15个新兴经济体1996-2017年的数据，采用了两步SYS GMM (SGMM)估计器。研究得出以下结论:第一，研究发现金融发展对西非经共体地区经济增长没有显著的正向影响。其次，作为制度质量变量的监管质量和对腐败的控制，其结果是相反的，腐败控制抑制增长，而监管质量变量促进增长。结果再次表明，资本形成与经济增长呈正相关，而劳动力对经济增长的影响为负。最后，由于该地区缺乏适当的腐败控制系统和金融部门发展不佳，增长无法改善。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Organizations and Markets in Emerging Economies ECONOMICS-

CiteScore

1.60

自引率

0.00%

发文量

审稿时长

20 weeks

期刊介绍： The journal aims to contribute to the development and dissemination of multidisciplinary knowledge on organizations and markets in emerging economies, to increase dialogue among scholars focused on a specific emerging economy or region and to encourage and give an outlet to high quality scholarship, both local and international, to this subject. Organizations and Markets in Emerging Economies welcomes analysis of emerging economies from the perspectives of organizational sciences, marketing, economics, finance and related disciplines. The journal appreciates studies that highlight specificities and patterns that occur in emerging economies and develop new empirical and theoretical knowledge on the subject.