Financial sector development and economic growth nexus in South Africa.

Loading...
Thumbnail Image

Date

2012

Journal Title

Journal ISSN

Volume Title

Publisher

Interscience Enterprises Ltd.

Abstract

The study investigated the nexus between financial sector development and economic growth in South Africa using co-integration and error correction modelling and; the Granger causality tests. The results of the study show that economic growth is explained by the financial sector variables and control variables such as inflation, exchange rate, and real interest rates. The Granger causality test results show that there is generally a bidirectional relationship between economic growth and financial sector development which implies that if the economy grows the financial services sector also grows and vice versa.

Description

Keywords

Financial sector development - South Africa, Economic growth nexus - South Africa, South Africa - Economic aspects, Monetary economics - South Africa, Unit root tests, Granger causality

Citation

Sunde, T. (2012). Financial sector development and economic growth nexus in South Africa.

Collections