The Relationship Between Inclusion, Financial Innovation and Economic Growth in Sub-Saharan African Countries: A PVAR Approach(Pages 49-59)
João Jungo*, Mara Madaleno and Anabela Botelho
Research Unit on Governance, Competitiveness and Public Policies (GOVCOPP), Department of Economics, Management, Industrial Engineering and Tourism (DEGEIT), University of Aveiro, Campus Universitário de Santiago, 3810-193 Aveiro, Portugal
The objective of this paper is to examine the relationship between inclusion, financial innovation, and economic growth. The goal is to verify the existence of a bidirectional relationship between the three variables. For this purpose, we use the Panel Vector Autoregressive (PVAR) model in the Generalized Method of Moments (GMM) on data from 46 Sub-Saharan African countries. The results confirm the existence of a positive and unidirectional relationship between economic growth and financial innovation and the existence of a unidirectional relationship between financial inclusion and economic growth. Additionally, our results show that there is a bidirectional relationship between economic growth and investment. Regarding practical implications, this study jointly analyzes three current and interrelated topics that pose a problem for the African continent and expands the scarce literature on financial development and economic growth. As for originality, this study considers the possibility of a bidirectional relationship between inclusion, financial innovation, and economic growth using a sample of 46 sub-Saharan African countries covering the period 2005-2018, a fact that was ignored in previous studies when they examined only unidirectional causality
Financial Innovation, Financial Inclusion, Economic Growth, Panel Vector Autoregressive model (PVAR), SubSaharan Africa.
C33, C38, E21, E22, E26, G20.
How to Cite:
João Jungo*, Mara Madaleno and Anabela Botelho. The Relationship Between Inclusion, Financial Innovation and Economic Growth in Sub-Saharan African Countries: A PVAR Approach. [ref]: vol.20.2022. available at: https://refpress.org/ref-vol20-a6/
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