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Research on the Impact of Financial Resources on Industrial Growth in Sub-Saharan Africa

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Author(s):
  • Ayine NIGO School of Organisations, Economy and Society, Westminster Business School , University of Westminster, UK
  • Vincent GIBOGWE School of Organisations, Economy and Society, Westminster Business School , University of Westminster, UK
Abstract:

This study contributes to the literature on financial efficiency and industrial growth. We use the Autoregressive Distributive Lag (ARDL) method to find the impact of institutional financial quality on the industry sector's growth in 14 Sub-Saharan African countries from 1990 to 2020. Our results show that only gross fixed capital formation has long-run variables and a significant (at 1% level) causal effect on the magnitude of industrial value added. As for the short run, only credit has an effective (at a 1% level) causal impact on the magnitude of industrial value added. The error correction (EC) term shows a joint significance with the causality of all variables in the long term.


Copyright© 2023 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.

How to cite:

Nigo, A. and Gibogwe, V. (2023). Research on the Impact of Financial Resources on Industrial Growth in Sub-Saharan Africa. Journal of Applied Economic Sciences, Volume XVIII, Summer, Issue 2(80): 65-72. https://doi.org/10.57017/jaes.v18.2(80).01

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