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Financial development, institutions and industrialization in sub‐Saharan Africa.

Authors :
Lo, Serigne Bassirou
Cissokho, Lassana
Source :
African Development Review / Revue Africaine de Développement. Jun2023, Vol. 35 Issue 2, p152-164. 13p.
Publication Year :
2023

Abstract

Using a panel data covering more than 100 countries worldwide, we have estimated a dynamic panel model to investigate the relationship between financial development and manufacturing industries' growth. More specifically, we have estimated the effect that institutional quality might have in this relationship in sub‐Saharan Africa (SSA). The results show that lower quality institutions in SSA are a hindrance to the role financial development plays in the growth of the manufacturing industrial sector, as compared with developed countries. These findings are robust when a quantile regression model is used. Furthermore, the results confirm that the relationship between per capita GDP and industrialization is nonlinear. Finally, in SSA, the abundance of natural resources has an adverse effect on the manufacturing industrial value added, providing more evidence for the Dutch disease hypothesis. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
10176772
Volume :
35
Issue :
2
Database :
Academic Search Index
Journal :
African Development Review / Revue Africaine de Développement
Publication Type :
Academic Journal
Accession number :
168591350
Full Text :
https://doi.org/10.1111/1467-8268.12697