Financial Sector Development and Economic Growth: Evidence from Zimbabwe

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dc.contributor.authorNdlovu, Godfrey
dc.date.accessioned2016-11-15T08:13:57Z
dc.date.accessioned2023-06-26T12:08:43Z
dc.date.available2016-11-15T08:13:57Z
dc.date.available2023-06-26T12:08:43Z
dc.date.issued2013
dc.descriptionThis is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.en_US
dc.description.abstractThe relationship between financial system development and economic development has attracted interest of a number of researchers all over the world, however institutional differences and capital allocation variations between and within economies, make it very difficult to generalize findings and thus increasing the need for country-specific studies. This study examines the causal relation between financial system development and economic growth from a Zimbabwean perspective, based on two inter-related broad aims, the first being the established of cointegration relationship between the two and the ultimate direction of the causal relationship. Using multivariate Granger causality test the study finds existence of demand following financial development in Zimbabwe, there is unidirectional causality from economic growth to financial development. Financial system development is therefore an outcome of the pressure for institutional development in capital markets and introduction of modernized financial instruments. As such policy concern should focus on trade liberalization and other related activities in order to spur economic growth, since financial system development is a passive reaction to economic growth. Such policies might include investment promotion and removal of barriers for foreign investments.en_US
dc.identifier.citationNdlovu, G. (2013) ‘Financial sector development and economic growth: Evidence from Zimbabwe’, International Journal of Economics and Financial Issues, 3(2), pp. 435–446.en_US
dc.identifier.issn2146-4138
dc.identifier.urihttp://196.220.97.103:4000/handle/123456789/697
dc.language.isoenen_US
dc.publisherEconJournalsen_US
dc.subjectFinancial system developmenten_US
dc.subjectEconomic growthen_US
dc.subjectPoverty alleviationen_US
dc.subjectgranger causalityen_US
dc.titleFinancial Sector Development and Economic Growth: Evidence from Zimbabween_US
dc.typeArticleen_US
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