This study analyzed both the long and short run relationship between insurance development and economic growth in Nigeria over the period 1986 to 2010. Using error correction model (ECM), the study finds that insurance development cointegrated with economic growth in Nigeria. That is there is long run relationship between insurance development and economic growth in Nigeria. The results also shows that physical capital and interest rate both at contemporary and one lagged value has significant positive effect on economic growth in Nigeria while physical capital and inflation has negative long run relationship with economic growth. The results of this study generally indicate statistically significance contribution of insurance to economic growth in Nigeria.

The paper investigates the impact of exchange rate volatility on trade in 40 selected sub-Saharan African countries for the period 1986-2005. The study employs a gravity model with pooled ordinary least square (POLS) allowing for fixed effect and panel Generalized Method of Moments (GMM) techniques. The results of the analysis show that the net effect of exchange rate volatility on aggregate trade was positive using the two approaches. In the way the results show that there is not much difference between the impact of exchange rate volatility on primary and manufactured trade as well as between ECOWAS and non-ECOWAS countries. However, the results should be interpreted with caution as the history of exchange rate volatility is still relatively young compared with the developed countries

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The Botswana banking system has witnessed substantial deregulation in the past three decades with the entry of foreign banks, mergers and acquisitions in the banking system and policy aimed at deregulating interest rates by moving towards more market determined interest rates. These measures should increase competition and reduce inefficiency in the banking system both resulting in lower costs of financial intermediation. However, the cost of financial intermediation has not only remained high but is also rising. This work uses data from the three largest banks from Botswana to investigate the impact of bank specific, industry specific and macroeconomic factors in determining the cost of financial intermediation. Our results show that balance sheet factors, industry specific and macroeconomic variables account for wide bank spreads and hence the high cost of financial intermediation in Botswana. The paper concludes by suggesting that better focused regulatory oversights by the central bank, a reform plan that will boost the supervision of the panoply of non-bank financial institutions and a further strengthening of the fiscal and exchange rate to ensure sustainable macroeconomic position will help to contain the rising cost of financial intermediation.JEL Classification: E43, G14, G21