Financial Development and Economic Growth in SSA: A Panel Econometric Approach

In this study, we examine the long run relationship between financial development and economic growth in 24 Sub-Saharan countries in Africa. The study explores the spatial impact in explaining the relationship. We examine the stationarity and weak exogeneity of the variables in the cointegrating vector to determine the causal relationship. The paper supports literature with evidences suggesting a causal relationship between finance and growth as we reject the null hypothesis of no cointegration relationship among the variables for all the different financial development indicators used