Financial sector development and economic growth nexus in South Africa.
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Date
2012
Authors
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.