Linkages Between Financial Deepening, Trade Openness, and Economic Development: Causality Evidence from Sub-Saharan Africa

B-Tier
Journal: World Development
Year: 2009
Volume: 37
Issue: 12
Pages: 1849-1860

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Summary This contribution tests for causality between financial deepening, trade openness, and economic development for 16 sub-Saharan African countries. The Hsiao-Granger method is used to add to the existing empirical evidence. Only limited support is found for the popular hypothesis of finance-led growth. In general, the evidence indicates that financial deepening and trade openness have swayed economic development rather marginally. In particular, the investigated countries have failed to benefit from financial deepening. Development strategies prioritizing financial or trade sector development hence cannot be supported.

Technical Details

RePEc Handle
repec:eee:wdevel:v:37:y:2009:i:12:p:1849-1860
Journal Field
Development
Author Count
3
Added to Database
2026-01-25