Impact of financial development on domestic investment: Evidence from West African countries

被引：1

作者：

Keho, Yaya ^{[1
,2
]}

机构：

[1] Ecole Natl Super Stat & Econ Appl ENSEA Abidjan, Abidjan, Cote Ivoire

[2] Ecole Natl Super Stat & Econ Appl ENSEA Abidjan, 8 BP 3, Abidjan, Cote Ivoire

来源：

AFRICAN DEVELOPMENT REVIEW-REVUE AFRICAINE DE DEVELOPPEMENT | 2023年 / 35卷 / 03期

关键词：

African countries; causality; domestic investment; financial development; pooled mean group; LAGRANGE MULTIPLIER TEST; SUB-SAHARAN AFRICA; ECONOMIC-GROWTH; PANEL-DATA; PRIVATE INVESTMENT; MARKET DEVELOPMENT; REMITTANCES; COINTEGRATION; BEHAVIOR; TESTS;

D O I：

10.1111/1467-8268.12709

中图分类号：

F0 [经济学]; F1 [世界各国经济概况、经济史、经济地理]; C [社会科学总论];

学科分类号：

0201 ; 020105 ; 03 ; 0303 ;

摘要：

This paper investigates the effect of financial development on domestic investment in West African countries. The study uses data from 1985 to 2019 and employs the pooled mean group technique. The main finding of the study is that financial development has a positive effect on domestic investment in the long run but an insignificant effect in the short run. Furthermore, remittances, real GDP per capita and trade openness increase investment rate. The results of causality tests support the view that investment is a channel through which financial development stimulates economic growth. Therefore, it is reasonable for the selected countries to formulate policies that promote domestic credit to the private sector in order to ease liquidity constraints and increase investment and economic growth.

引用

页码：270 / 281

页数：12

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