Développement financier et croissance économique en RDC : Supply leading ou demand folowing ?

PINSHI, Christian P. and KABEYA, Anselme M. (2020): Développement financier et croissance économique en RDC : Supply leading ou demand folowing ?

Abstract

This paper aims to verify the causal relationship between financial development and economic growth in the Democratic Republic of Congo (DRC) using data from 2004 to 2019. The dynamic Granger causality analysis is used to analyze the variables. The results indicate that there is a robust, one-way relationship from economic growth to financial development. This result confirms the Demand-following hypothesis that economic growth drives the development of the financial system. Therefore, policies to promote economic growth, such as the accumulation of human capital, macroeconomic stabilization, rehabilitation of key infrastructure, structural reforms and the creation of a good economic environment for the private and regulatory sector, are crucial to improve financial development in the DRC.

• Item Type: MPRA Paper
• English Title: Financial development and economic growth in the DRC : Supply leading or demand folowing ?
• Language: French
• Keywords: Financial development, economic growth, Democratic Republic of the Congo
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity

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