New insight from cross-sectional autoregressive distribution lag on the interconnectedness among financial development, financial inflows and economic growth in Sub-Saharan Africa

Authors

  • Soliu Bidemi Adegboyega Olabisi Onabanjo University, Ago-Iwoye, Nigeria
  • Sunday Idowu Oladeji Obafemi Awolowo University, Ile-Ife, Nigeria
  • Benjamin Ayodele Folorunso Obafemi Awolowo University, Ile-Ife, Nigeria
  • Olabode Philip Olofin Obafemi Awolowo University, Ile-Ife, Nigeria

DOI:

https://doi.org/10.14276/2285-0430.4343

Keywords:

Cross sections, Financial markets, Financial inflows, Economic growth

Abstract

The paper explores the relationship between financial inflows, financial development, and economic growth in Sub-Saharan Africa (SSA) from 1990 to 2019. Secondary data from the World Development Indicators (WDI) were utilized for analysis. Preliminary tests, including slope homogeneity test, cross-sectional dependence test, and second-generation panel unit root tests (CADF and CIPS), were conducted to account for cross-sectional dependence. The findings from the CS-ARDL analysis revealed that financial development positively influences long-run economic growth but not in the short run. Additionally, remittances and foreign debt inflows had a positive and statistically significant impact on economic growth in the selected SSA countries. However, the influence of foreign direct investment and foreign portfolio investment on economic growth was found to be mixed and not statistically significant. In conclusion, the study establishes an interconnectedness between financial inflows, financial development, and economic growth in SSA. Nonetheless, it highlights that not all types of financial inflows contribute as expected to the growth of the selected countries in the region.

Author Biographies

Soliu Bidemi Adegboyega, Olabisi Onabanjo University, Ago-Iwoye, Nigeria

Is a lecturer in the Department of Economics, Olabisi Onabanjo University, Ago Iwoye, Nigeria. He obtained his first degree in Economics (B.Sc.) from Olabisi Onabanjo University, Master of Science (M.Sc.) from University of Ibadan, Master of Philosophy (M.Phil) and Doctor of Philosophy (Ph.D) from Obafemi Awolowo University, Ile-Ife. Nigeria. He has published over 35 articles in peer-reviewed journals, including prestigious outlets like the Tanzanian Economic Review, African Development Review, Wiley Online, SN Bus Eco and the North American Journal of Economics and Finance among others. His research focuses on topics such as financial flows, economic growth, current account dynamics, and the shadow economy, utilizing advanced econometric techniques. He has over 10 years of teaching experience at the university level, offering courses in mathematics for economists, development economics, advanced microeconomics, and econometric methods

Sunday Idowu Oladeji, Obafemi Awolowo University, Ile-Ife, Nigeria

Oladeji, Sunday Idowu is the most senior Professor in the Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria where he teaches Development Economics and Planning, Labour/ Human Resource Economics. He holds a B.Sc. Economics from the University of Ibadan, an M.Sc. (Economics) in Operational Research from the London School of Economics and Political Science (University of London, UK) and a Ph.D. (Economics) from the Obafemi Awolowo University, Ile-Ife. His research interests extend to several aspects of Development Economics and Planning: Economics of Education and Human Resource Development, Employment and Labour Market Issues, and Economics of the Informal Sector. His current research interest is focused on the issues of Research and Development as well as the Economics of Science and Technology Policy in Nigeria.

Benjamin Ayodele Folorunso , Obafemi Awolowo University, Ile-Ife, Nigeria

Folorunso, Ayodele Benjamin is senior Professor in the Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria. His teaching is anchored around Economic Theory, Applied Econometrics, Mathematical Economics and Research Methods, Monetary Policies and Development Economics. He holds a B.Sc., M.Sc. and Ph.D Economics from the Obafemi Awolowo University, Ile-Ife. He has over 24 years of teaching experience at the university level, offering courses in microeconomics theory, development economics, advanced macroeconomics, and applied econometric methods.

Olabode Philip Olofin, Obafemi Awolowo University, Ile-Ife, Nigeria

Olofin, Olabode Philip is a Professor in the Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria. His teaching anchored around Economic Theory, Applied Econometrics, Mathematical Economics and Research Methods, Monetary Policies and Development Economics. He holds a B.Sc., M.Sc. and Ph.D. Economics from the Obafemi Awolowo University, Ile-Ife. His research over the years anchored on Development Economics, and Monetary Economics.

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Published

05.10.2024

Issue

Vol. 14 No. 1 (2024): International Journal of Economic Behavior

Section

Articles

License

Copyright (c) 2024 Soliu B Adegboyega, Sunday I. Oladeji, Benjamin. A. Folorunso , O.P. Olofin

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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

L'opera è pubblicata sotto Licenza Creative Commons -CC Attribution-ShareAlike 4.0