Financial Integration and Growth Outcomes in Africa: Experience of the Trade Blocs

Ibrahim Adekunle (), Abayomi Onanuga () and Ibrahim Odusanya
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Ibrahim Adekunle: Ilishan-Remo, Ogun State, Nigeria
Abayomi Onanuga: Ago-Iwoye, Ogun State, Nigeria

No 21/052, Research Africa Network Working Papers from Research Africa Network (RAN)

Abstract: In this study, we examine the benefits of financial integrations in four of Africa regional trade blocs: COMESA, ECCAS, CEN-SAD and ECOWAS. We regress de-jure and de-facto indices of financial integration on growth outcome using the dynamic system generalised method of moment and pooled mean group estimation procedure. Findings revealed that total foreign asset and liabilities and foreign liabilities as a percentage of GDP are inversely related to growth outcomes in COMESA. In CEN-SAD, we found that foreign liabilities as a percentage of GDP hurts growth. In ECCAS, growth-financial integration relationship showed that foreign liabilities as a percentage of GDP inhibit real per capita GDP in the long run. In ECOWAS, foreign liabilities as a percentage of GDP is inversely related to real per capita GDP in the long run. Policy implications of our findings were discussed.

Keywords: Financial Integration; Economic Growth; system GMM; Pooled Mean Group; Regional Trade Bloc; Africa (search for similar items in EconPapers)
JEL-codes: F36 F43 O47 (search for similar items in EconPapers)
Pages: 33
Date: 2021-01
New Economics Papers: this item is included in nep-int
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Forthcoming in Transnational Corporations Review

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http://publications.resanet.org/RePEc/abh/abh-wpap ... tcomes-in-Africa.pdf Revised version, 2021 (application/pdf)

Related works:
Working Paper: Financial Integration and Growth Outcomes in Africa: Experience of the Trade Blocs (2021)
Working Paper: Financial Integration and Growth Outcomes in Africa: Experience of the Trade Blocs (2021)
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