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Author
Ehigiamusoe Kizito Uyi (Universiti Sains Malaysia), Lean Hooi Hooi (Universiti Sains Malaysia)
Title
Tripartite Analysis of Financial Development, Trade Openness and Economic Growth : Evidence from Ghana, Nigeria and South Africa
Source
Contemporary Economics, 2018, vol. 12, nr 2, s. 189-206, tab., bibliogr. 63 poz.
Keyword
Badanie diagnostyczne, Finanse, Wzrost gospodarczy, Handel, Analiza porównawcza
Diagnostic test, Finance, Economic growth, Trade, Comparative analysis
Note
JEL Classification: G15, F10, O11
summ.
Kizito Uyi Ehigiamusoe acknowledges support received from Universiti Sains Malaysia (USM) through Teaching Fellowship.
Country
Nigeria, Afryka Południowa, Ghana
Nigeria, South Africa, Ghana
Abstract
This study examines the tripartite relationship between financial development, trade openness and economic growth in Ghana, Nigeria and South Africa for the 1980-2014 period. The study reveals a long-run causal relationship between financial development, trade openness and economic growth, thereby supporting finance- and trade-led growth hypotheses for Ghana, Nigeria and South Africa. Moreover, long-run causality from financial development and economic growth to trade openness is found for Ghana. In the short-run, there is evidence of causality from growth to financial development for Ghana, from trade openness to financial development for Nigeria and from growth and financial development to trade openness for South Africa. The findings of this study are robust to alternative proxies of financial development and various diagnostic tests. The study shows that financial development and trade openness can be deployed to accelerate growth, while growth and financial development can be used to promote trade openness. Additionally, trade openness spurs financial development. Therefore, a tripartite relationship exists between the three variables. Hence, interdependence between financial development, trade openness and economic growth is found and consequent policy recommendations are made. (original abstract)
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Bibliography
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ISSN
2084-0845
Language
eng
URI / DOI
http://dx.doi.org/10.5709/ce.1897-9254.271
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