Financial Permeation and Economic Growth: Evidence from Sub-Saharan Africa

Inoue, Takeshi and Hamori, Shigeyuki (2013): Financial Permeation and Economic Growth: Evidence from Sub-Saharan Africa.

Abstract

This article empirically analyzes the role of finance in economic growth in Sub-Saharan Africa from the perspective of what is termed herein “financial permeation”. By estimating panel data on 37 countries in Sub-Saharan Africa between 2004 and 2010, we examine whether financial permeation through improved convenience and access to financial services has contributed to economic growth in this region. Empirical results clearly indicate that financial permeation has a statistically significant and robust effect on increasing economic growth in Sub-Saharan Africa.

• Item Type: MPRA Paper
• Language: English
• Keywords: Economic growth, Financial inclusion, Financial permeation, Sub-Sahara Africa
• Subjects: G - Financial Economics > G0 - General > G00 - General; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development

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