TITLE:
Financial Development and Economic Growth in the Southern African Development Community (SADC): The Role of Institutional Quality
AUTHORS:
Allegra Kabamba Mbuyi, Evariste Mabi Mulumba
KEYWORDS:
Financial Development, Institutions, Economic Growth, SADC
JOURNAL NAME:
Journal of Financial Risk Management,
Vol.11 No.2,
May
11,
2022
ABSTRACT: 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.