Author(s)

Allegra Kabamba Mbuyi, Evariste Mabi Mulumba

Department of Economics, Faculty of Economics and Management, University of Kinshasa, Kinshasa, Democratic Republic of the Congo (DRC).

The objective of this paper is to study the relationship between financial development and economic growth conditional on the institutional environment in the Southern African Development Community (SADC) countries over the period 2000-2020. To achieve this objective, we used the Aggregate Group Mean (AGM) estimator. Our results indicate that financial development is not homogeneous across the subregion, so it contributes significantly to economic growth in SADC countries when the institutional environment is of good quality. This empirical evidence explains the differences in economic growth across SADC countries and recommends good quality institutions for finance to positively impact growth in the subregion.

Financial Development, Institutions, Economic Growth, SADC

A. Kabamba M. and E. Mabi M(2022) Financial Development and Economic Growth in the Southern African Development Community (SADC): The Role of Institutional Quality. Journal of Financial Risk Management, 11, 296-310. doi: 10.4236/jfrm.2022.112015.