Financial Markets and Economic Development in Africa

Authors

Léonce Ndikumana, University of Massachusetts Amherst

Working Paper Number

17

Publication Date

2001

Comments

Working Paper 17

Abstract

The role of financial markets in economic development continues to attract increasing attention both in academia and among policy-makers.1 Evidence from recent empirical studies suggests that deeper, broader, and better functioning financial markets can stimulate higher economic growth (Levine, Loayza and Beck 2000; Beck, Levine, and Loayza 1999; King and Levine 1993a, 1993b). Although evidence on Africa is still limited, the results from existing empirical work supports the view that financial development has a positive effect on economic growth in African countries (Ndikumana 2000; Allen and Ndikumana 2000; Gelbard and Leite 1999; Odedokun 1996; Spears 1992). The discussion of strategies for enhancing African economic development must therefore take into account the role of the financial sector in economic development.

DOI

https://doi.org/10.7275/1274383