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Scrutinizing the complex relationship between Financial Development Gross Fixed Capital Formation and Economic Growth in Africa by adopting CCEMG and AMG estimation techniques Yusheng Kong, Easmond Baah Nketia, Stephen Kwadwo Antwi & Mohammed Musah

Scrutinizing the complex relationship between Financial Development Gross Fixed Capital Formation and Economic Growth in Africa by adopting CCEMG and AMG estimation techniques

Author (s)

Yusheng Kong, Easmond Baah Nketia, Stephen Kwadwo Antwi & Mohammed Musah

Abstract

­This paper explores the relationship between gross fixed capital formation, financial development, and economic growth in Africa. The study used 39 African countries from 1997 to 2017. The study adopted five financial development indicators. The study employed Augmented Mean Group and Common Correlated Effects Mean Group estimation techniques for the estimations. From the study, Bank Deposit to GDP is statistically significant, it has a negative effect on economic growth, and it shows dual causality, Bank Deposit is inadequate in Africa but significant to economic growth. Broad Money to GDP, Domestic Credit to GDP, and Credit to Private Sector to GDP are all statistically insignificant to growth. They also have negative influence on economic growth. Broad Money shows dual causality with growth while both Domestic Credit, and Credit to Private Sector displays one way causality from economic growth. Gross Domestic Savings to GDP is statistically insignificant and it has a positive bearing on growth, it has one-way causality from growth. Broad Money is very limited in Africa to the extent that, the funds available for domestic transactions are barely enough to have any impact on economic growth. Domestic banks and financial institutions hardly gives credit to private sector and government institutions, due to high risk factor. Gross fixed capital formation has a positive bearing on economic growth. It displays bi-directional causality with economic growth. Financial development does not have a blanket relationship with economic growth, but rather it depends on the type of financial development indicator being used.

 Keywords: Financial Development, Gross Fixed Capital Formation, Economic Growth, Africa, Relationship.

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Title: Scrutinizing the complex relationship between Financial Development Gross Fixed Capital Formation and Economic Growth in Africa by adopting CCEMG and AMG estimation techniques
Author: Yusheng Kong, Easmond Baah Nketia, Stephen Kwadwo Antwi & Mohammed Musah
Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.4282943
Media: Online
Volume: 4
Issue: 11
Acceptance Date: 17/11/2020
Date of Publication: 21/11/2020
PDF URL: https://ijsab.com/wp-content/uploads/620.pdf
Free download: Available
Page: 160-174
First Page: 160
Last Page: 174
Paper Type: Research article
Current Status: Published

 

Cite This Article:

Yusheng Kong, Easmond Baah Nketia, Stephen Kwadwo Antwi & Mohammed Musah (2020). Scrutinizing the complex relationship between Financial Development Gross Fixed Capital Formation and Economic Growth in Africa by adopting CCEMG and AMG estimation techniques. International Journal of Science and Business, 4(11), 160-174. doi: https://doi.org/ 10.5281/zenodo.4282943

Retrieved from https://ijsab.com/wp-content/uploads/620.pdf

 

About Author (s)

Yusheng Kong, PhD,  School of Finance and Economics, Jiangsu University, 301 Xuefu Road, Zhenjiang, Jiangsu Province, PR China. 212013.

Easmond Baah Nketia (corresponding author), School of Finance and Economics, Jiangsu University, 301 Xuefu Road, Zhenjiang, Jiangsu Province, PR China. 212013. Email: ebnketia@gmail.com

Stephen Kwadwo Antwi, School of Finance and Economics, Jiangsu University, 301 Xuefu Road, Zhenjiang, Jiangsu Province, PR China. 212013.

Mohammed Musah, School of Finance and Economics, Jiangsu University, 301 Xuefu Road, Zhenjiang, Jiangsu Province, PR China. 212013.

 

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DOI: https://doi.org/10.5281/zenodo.4282943

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Role of Globalization and Financial Development on the Population’s Health Status in the South Asian Countries: A Panel Quantile Regression Investigation Khaleda Akter, Zerin Tasnime, & S.M. Nasir Uddin

Role of Globalization and Financial Development on the Population’s Health Status in the South Asian Countries: A Panel Quantile Regression Investigation

Author (s)

Khaleda Akter, Zerin Tasnime, & S.M. Nasir Uddin

Abstract

Using the annual data from 1983 to 2016, the study attempted to explore the role of globalization and financial development on life expectancy in South Asian countries, at the presence of economic growth and pollution. The study employed the panel quantile regression (median) technique that could provide reliable results in the presence of heteroskedasticity and cross-section dependence in residuals, while pooled OLS, fixed effect and random effect models were not. Estimated results confirm that the model is correctly specified, and there is no asymmetry in quantiles. This study has found a significant positive impact for economic growth, globalization, and financial development, and a significant negative impact for environmental pollution on life expectancy in the study countries. So, policymakers have to promote globalization and financial development to improve the population’s health status, besides controlling environmental pollution.

 Keywords: Life expectancy, globalization, financial development, environmental pollution, panel quantile regression.

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Title: Role of Globalization and Financial Development on the Population’s Health Status in the South Asian Countries: A Panel Quantile Regression Investigation
Author: Khaleda Akter, Zerin Tasnime, & S.M. Nasir Uddin
Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.4133000
Media: Online
Volume: 4
Issue: 11
Acceptance Date: 20/10/2020
Date of Publication: 25/10/2020
PDF URL: https://ijsab.com/wp-content/uploads/613.pdf
Free download: Available
Page: 82-92
First Page: 82
Last Page: 92
Paper Type: Research article
Current Status: Published

 

Cite This Article:

Khaleda Akter, Zerin Tasnime, & S.M. Nasir Uddin (2020). Role of Globalization and Financial Development on the Population’s Health Status in the South Asian Countries: A Panel Quantile Regression Investigation. International Journal of Science and Business, 4(11), 82-92. doi: https://doi.org/10.5281/zenodo.4133000

Retrieved from https://ijsab.com/wp-content/uploads/613.pdf

 

About Author (s)

Khaleda Akter (corresponding author), Lecturer, Department of Economics, Pabna University of Science and Technology, Pabna-6600, Bangladesh.

Zerin Tasnime, Lecturer, Department of Finance & Banking, Bangabandhu Sheikh Mujibur Rahman Science and Technology University, Gopalganj-8100, Bangladesh.

S.M. Nasir Uddin, Lecturer, Department of Economics, Bangabandhu Sheikh Mujibur Rahman Science and Technology University, Gopalganj-8100, Bangladesh.

 

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DOI: https://doi.org/10.5281/zenodo.4133000