Financial development and innovationled economic growth: Empirical insight from sub-Saharan Africa

Q3 Economics, Econometrics and Finance

Economic Annals Pub Date : 2023-01-01 DOI:10.2298/eka2337097j

A. Jibir, H. Zada, M. Abdu, N. Khan

{"title":"Financial development and innovationled economic growth: Empirical insight from sub-Saharan Africa","authors":"A. Jibir, H. Zada, M. Abdu, N. Khan","doi":"10.2298/eka2337097j","DOIUrl":null,"url":null,"abstract":"The body of literature on the nexus concerning innovation, the development of financial systems, and economic growth has gained increasing attention in recent times. However, it is observed that the majority of studies are conducted in developed and emerging economies. This study is unique in its own right by exploring the effect of innovation and financial development on economic growth using panel data for 30 sub-Saharan Africa (SSA) countries from 2001-2018. The study employed symmetric panel ARDL, common correlated effect ARDL, and asymmetric panel ARDL. Our empirical findings revealed a long-run effect of innovation and financial development on the economic growth of SSA. This means that expansion of the financial sector and better innovation activities in SSA stimulate long-term economic growth. Robustness tests provided consistent results with the baseline findings. The study therefore recommends that to promote sustained economic growth and development in the region, policy makers must collectively work in close collaboration with relevant stakeholders in enhancing regional financial reforms and innovative activities.","PeriodicalId":35023,"journal":{"name":"Economic Annals","volume":"1 1","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Economic Annals","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2298/eka2337097j","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"Economics, Econometrics and Finance","Score":null,"Total":0}

引用次数: 0

Abstract

The body of literature on the nexus concerning innovation, the development of financial systems, and economic growth has gained increasing attention in recent times. However, it is observed that the majority of studies are conducted in developed and emerging economies. This study is unique in its own right by exploring the effect of innovation and financial development on economic growth using panel data for 30 sub-Saharan Africa (SSA) countries from 2001-2018. The study employed symmetric panel ARDL, common correlated effect ARDL, and asymmetric panel ARDL. Our empirical findings revealed a long-run effect of innovation and financial development on the economic growth of SSA. This means that expansion of the financial sector and better innovation activities in SSA stimulate long-term economic growth. Robustness tests provided consistent results with the baseline findings. The study therefore recommends that to promote sustained economic growth and development in the region, policy makers must collectively work in close collaboration with relevant stakeholders in enhancing regional financial reforms and innovative activities.

查看原文本刊更多论文

金融发展与创新经济增长:来自撒哈拉以南非洲的实证洞察

近年来，关于创新、金融体系发展和经济增长之间关系的文献越来越受到关注。然而，人们注意到，大多数研究是在发达和新兴经济体进行的。本研究利用2001年至2018年30个撒哈拉以南非洲(SSA)国家的面板数据，探索了创新和金融发展对经济增长的影响，这一研究本身就是独一无二的。本研究采用对称面板ARDL、共同相关效应ARDL和非对称面板ARDL。实证结果揭示了创新和金融发展对区域经济增长的长期影响。这意味着金融部门的扩张和SSA更好的创新活动刺激了长期的经济增长。稳健性测试提供了与基线结果一致的结果。因此，该研究建议，为了促进本地区的持续经济增长和发展，政策制定者必须与相关利益攸关方密切合作，共同努力，加强区域金融改革和创新活动。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Economic Annals Economics, Econometrics and Finance-Economics, Econometrics and Finance (all)

CiteScore

0.90

自引率

0.00%

发文量

审稿时长

18 weeks

期刊介绍： Economic Annals is an academic journal that has been published on a quarterly basis since 1955, initially under its Serbian name of Ekonomski anali (EconLit). Since 2006 it has been published exclusively in English. It is published by the Faculty of Economics, University of Belgrade, Serbia. The journal publishes research in all areas of economics. The Editorial Board welcomes contributions that explore economic issues in a comparative perspective with a focus on transition and emerging economies in Europe and around the world. The journal encourages the submission of original unpublished works, not under consideration by other journals or publications. All submitted papers undergo a double blind refereeing process. Authors are expected to follow standard publication procedures [Instructions to Authors], to recognise the values of the international academic community and to respect the journal’s Policy.