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Finance and Growth in Africa: The Broken Link
reportposted on 2011-04-20, 12:57 authored by Panicos O. Demetriades, Gregory A. James
Utilizing the latest panel cointegration methods we provide new empirical evidence from 18 countries that suggests that the link between finance and growth in Sub- Saharan Africa is ‘broken’. Specifically, our findings suggest that banking system development in this region follows economic growth. They also indicate that there is no link between bank credit and economic growth.