The finance–growth nexus in the Middle East and Africa: A comparative m<scp>eta‐analysis</scp>

Anwar, Amar; Iwasaki, Ichiro

doi:10.1002/ijfe.2670

Cited by 5 publications

(1 citation statement)

References 139 publications

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“…The former is a group of economies that are often more connected to global markets than to their neighbors, while the latter is tied to the Middle East through cultural ties, including a shared language and dominant religion. The financial sector in Africa has been growing rapidly in recent years, with many countries experiencing significant economic growth (Anwar & Iwasaki, 2022;Omar Bakar, Sulong, & Chowdhury, 2022). According to a survey conducted in 2006, the financial and real estate sectors contributed the largest to economic growth in South Africa.…”

Section: Historical and Current State Of The Financial Sector In Africamentioning

confidence: 99%

Harnessing Ai for Africa's Financial Fortification: A Review

Augustine Lottu,

Mobolaji Abioye,

Naomi Oguntoyinbo

et al. 2023

Bus.org.soci

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Africa’s financial landscape presents a complex tapestry characterized by adversity and opportunity. It is home to a significant portion of the world’s unbanked and underbanked population, with millions still lacking access to fundamental financial services. However, amid these challenges, Africa also boasts a burgeoning tech-savvy population, a growing number of innovative fintech startups, and governments increasingly recognizing the pivotal role of financial inclusion in sustainable development. This dynamic interplay between adversity and opportunity defines Africa’s financial sector, shaping its trajectory during this economic and technological transformation era. This paper explores the challenges and opportunities of adopting Artificial Intelligence (AI) within the African financial sector. The study researches the current landscape, underlining key statistics such as the substantial percentage of African unbanked individuals. It also identifies significant barriers to AI adoption, such as infrastructure limitations, data quality issues, and regulatory ambiguities. To address these challenges effectively, the paper proposes actionable recommendations targeted at policymakers, financial institutions, and stakeholders. To maximize AI’s potential for transforming the African financial sector, strategies for infrastructure development, data quality enhancement, regulatory clarity, skills development, and the ethical deployment of AI are discussed. This paper highlights the challenges and underscores AI’s immense potential for financial inclusion and economic growth in Africa.

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Section: Historical and Current State Of The Financial Sector In Africamentioning

confidence: 99%

Harnessing Ai for Africa's Financial Fortification: A Review

Augustine Lottu,

Mobolaji Abioye,

Naomi Oguntoyinbo

et al. 2023

Bus.org.soci

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Quest for the general effect size of finance on growth: a large meta-analysis of worldwide studies

Iwasaki,

Kočenda

2023

Empir Econ

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We analyze diverse and heterogenous literature to grasp the general effect size of financial development on economic growth on a world scale. For that, we perform by far the largest available meta-analysis of the finance-growth nexus using 3561 estimates collected from 177 studies. Our meta-synthesis results show that large heterogeneity in empirical evidence is, in fact, driven by only a limited number of variables (moderators). By using advanced techniques, we also document the existence of the publication selection bias that is propagated in the literature in a nonlinear fashion. We account for uncertainty in moderator selection by employing modelaveraging techniques. After adjusting for the publication bias, the results of our meta-regression provide evidence of a small but genuine positive effect of the financial development on growth that very mildly declines over time. Finance channeled via capital markets seems to be more beneficial for economic growth than that provided in the form of private credit. Our evidence goes against arguments about the damaging role of financial development and is in line with centuryold theoretical foundations that favor the positive role of finance on economic growth.

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