Financial development and private investment in Sub-Saharan AfricaRoseline Nyakerario Misati and Esman Morekwa Nyamongo Journal of Economics and Business, 2011, vol. 63, issue 2, 139-151 Abstract: This study examines the relationship between financial sector development and private investment in Sub-Saharan Africa. It uses panel data covering the period 1991-2004 from 18 countries in Africa. The main findings of the study are as follows: there is a negative relationship between interest rate and private investment, signaling large interest rate spreads in African economies. It is also found that both the credit to the private sector and the turnover ratio have significant relationships with private investment. However, the effect of turnover ratio on investment is insignificant. The insignificance of the stock market indicator reflects the low stage of stock market development in most of the African economies. In addition, it is found that the informal sector is still large and has positive effects on private investment and that institutional variables play a key role in determining the level of private investment in Africa. Keywords: Financial; development; Private; investment; Panel; Data; Africa (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jebusi:v:63:y::i:2:p:139-151 Access Statistics for this article Journal of Economics and Business is currently edited by Emanuele Bajo and Moritz Ritter More articles in Journal of Economics and Business from Elsevier |
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