Growing the Growth of the Ghanaian Economy: Is the Function of the Countrys Financial Development of Any Significance?

Rafindadi, Abdulkadir Abdulrashid; Aliyu, Almustapha A.

doi:10.18488/journal.aefr/2017.7.2/102.2.206.221

Cited by 7 publications

(4 citation statements)

References 48 publications

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“…This implies that the combination of ICT and financial development is required to bring about improvement in economic performance of ECOWAS countries. This result is in tune with previous empirical evidences such as Abdulsalam et al [1] and Rafindadi and Aliyu [59] who establish the growth impact of financial development through the roles of other intervening variables such as human capital development and trade openness and a host of studies that find the positive and significant growth impact of ICT [11, 23, 28, 34-37, 44, 52, 53, 72, 74]. More strikingly, our results support previous findings by Sassi and Goaied [67], Pradhan et al [51] and Salahuddin and Gow [65], suggesting that ICT diffusion positively influences financial development to spur economic growth.…”

Section: The Short-and Long-run Estimation Resultssupporting

confidence: 93%

“…However, this outcome validates the findings of Ductor and Grechyna [18], Adusei [8] in Ghana, Samargandi et al [66] in middle-income countries, Adeniyi et al [5] in Nigeria and Kenza and Eddine [31] in MENA countries. Less importantly, the coefficient of trade openness (DOP) is positive and significant in the long run signifying the growth benefits of economic openness to the focused economies, in confirmation of the findings of Rafindadi and Yusof [55] and Rafindadi and Aliyu [59].…”

Section: The Short-and Long-run Estimation Resultssupporting

confidence: 77%

“…Rafindadi and Ozturk [60] also find that financial development, economic growth and trade openness stimulate electricity consumption, while capital stock impedes electricity consumption in Japan. Rafindadi and Aliyu [59] reveal that financial development and trade openness foster long-run but not short-run economic growth in Ghana.…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

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ICT diffusion and the finance–growth nexus: a panel analysis on ECOWAS countries

Alimi

Adediran

2020

Futur Bus J

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In this study, we rely on the extension of the endogenous growth theory to consider the role of ICT diffusion in the finance-growth nexus theoretically informed via the supply-leading and demand-following theses. Motivated by current realities highlighting the significance of information and communication technologies (ICTs) to modern societies, the study evaluates the foregoing research objective in ECOWAS countries over the 2005-2016 period based on the justification of the ICT diffusion into the ECOWAS region around the early 2000s. Innovatively, the study constructs an ICT diffusion index covering fixed telephone lines, mobile cellular subscription and Internet penetration as relevant media for ICT dispersion. We adopt the pooled mean group estimator on a dynamic panel ARDL model for robust analysis of the subject matter. We find that financial development (its main and alternative measure) alone inhibits growth of ECOWAS countries, but its interaction with ICT diffusion promotes economic growth in the region. The implication of our research findings for the West African region is that financial sector development efforts have to be strengthened by investment in ICT infrastructure, improved Internet penetration and further integration of electronic finance policies.

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Section: The Short-and Long-run Estimation Resultssupporting

confidence: 93%

Section: The Short-and Long-run Estimation Resultssupporting

confidence: 77%

Section: Empirical Literature Reviewmentioning

confidence: 99%

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ICT diffusion and the finance–growth nexus: a panel analysis on ECOWAS countries

Alimi

Adediran

2020

Futur Bus J

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“…The argument here is that domestic investor's income is taxed away by the increasing foreign debts such that local and external investments are distorted and thereby reducing GDP. Put in another sense, relying on financial assistance such as debt for economic rejuvenation is tantamount to growth procrastination and escalation (Rafindadi and Aliyu, 2017). To the Keynesian theorists, one way of stimulating economic growth is to inject more money into the economy and this can be achieved through borrowing if the expected revenues fall short of government expenditures.…”

Section: Theoretical and Empirical Reviewmentioning

confidence: 99%

Pre-COVID-19 evaluation of external debt, corruption and economic growth in South Africa

Olamide

Maredza

2021

REPS

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PurposeThis study is a pre-COVID-19 exposition of the existing situation about external debt-GDP relationship, incorporating corruption into the hypothesis, making South Africa the object of the study. The aim is to examine the causal relationship between corruption, economic growth and external debt, and in the end proffer solutions to the problems arising therefrom.Design/methodology/approachThe study employed ARDL technique on time series data running from 1990 to 2019 with real gross domestic product as the dependent variable and external debt, external debt servicing, corruption, inflation and capital formation as regressors. Necessary tests that include unit root, cointegration, CUSUM and CUSUMSq, normality, serial correlation and heteroscedasticity were performed on the model.FindingsThe study shows that corruption, inflation and external debt servicing exert negative influences on economic growth while the effect of investment on growth was positive. External debt's effect in the short run was positive while its long-run effect on growth was negative. Among other things, the need to improve and strengthen public institutions in addition to targeting tax evaders and avoiders for increased government revenue were emphasized.Originality/valueThe study incorporates corruption into the country specific debt-GDP debate as against earlier studies that excluded corruption in their time series analysis or that were cross-country based. The authors also exposit the existing knowledge of the debt-GDP hypothesis before the outbreak of COVID 19 pandemic. This is expected to serve as a precursor to subsequent studies on the rising debt of South Africa during and after the pandemic.

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The finance–growth nexus in the Middle East and Africa: A comparative meta‐analysis

Anwar

Iwasaki

2022

Int. J Fin Econ

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By taking 1417 estimates from 96 studies and applying advanced meta‐analysis techniques, this study compares the effect size of financial development (FD) and liberalization on economic growth in the Middle East and Africa. We find that the overall finance–growth nexus is positive, yet its effect size differs across regions. Indeed, finance has a larger growth‐enhancing effect in the sub‐Saharan Africa (SSA) region than in the Middle East and North Africa region. This finding is supported by meta‐regression analysis that controls for various study conditions simultaneously. Moreover, we uncovered that the extracted estimates contain evidence of the true effect size of FD and liberalization on growth in the extant literature and SSA studies.

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Growing the Growth of the Ghanaian Economy: Is the Function of the Countrys Financial Development of Any Significance?

Abstract: ABSTRACT

Cited by 7 publications

References 48 publications

ICT diffusion and the finance–growth nexus: a panel analysis on ECOWAS countries

ICT diffusion and the finance–growth nexus: a panel analysis on ECOWAS countries

Pre-COVID-19 evaluation of external debt, corruption and economic growth in South Africa

The finance–growth nexus in the Middle East and Africa: A comparative meta‐analysis

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