Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/114614
Authors: 
Omisakin, Olusegun A.
Adeniyi, Oluwatosin A.
Year of Publication: 
2014
Citation: 
[Journal:] International Journal of Economic Sciences and Applied Research [ISSN:] 1791-3373 [Volume:] 7 [Year:] 2014 [Issue:] 3 [Pages:] 63-80
Abstract: 
This study makes a cross sectional case in investigating the validity, or otherwise, of the finance-driven growth hypothesis in the ECOWAS countries using annual data from 1970 to 2008 for seven countries namely: Burkina Faso, Cote d’Ivoire, The Gambia, Ghana, Nigeria, Senegal and Togo. In contrast to earlier studies on developing countries, this study specifically tests for the possibility of structural breaks/regime shifts in the finance-growth long run relationship by employing the Gregory and Hansen (1996) residual based test which accounts for endogenous structural break. While the Gregory-Hansen structural break cointegration result confirms the existence of cointegration relationships among the selected countries despite the breakpoints, the Granger-causality test result indicates a general pattern of causality running from financial development to economic growth in most of the countries. Also, the striking feature of the result of our estimated growth model generally lends credent to the importance of financial development in explaining growth dynamics among the selected countries, thus reinforcing the finance-driven growth hypothesis.
Subjects: 
Financial development
Economic growth
Structural break
Cointegration
JEL: 
B23
C31
C51
F36
G15
Document Type: 
Article

Files in This Item:
File
Size
318.81 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.