The Role of Financial Development and Institutional Quality in Economic Growth in Africa in the Era of Globalization

  • Kahsay Berhane


This study examines the short and long-run impact of financial development, institutional quality and globalization on economic growth on a sample of 40 Africa countries. It also examines whether the relationships differ across sub-groups of countries namely low-income, lower-middle-income and upper-middle-income over the period 1980–2014. It uses a new technique in macro-econometrics panel estimation to control for dynamic heterogeneity and cross-sectional dependence for an econometric analysis. The findings reveal that the existence of cross-sectional dependence which is non-stationary at their level becomes stationary in their first difference. It also shows the presence of co-integration among the variables showing a long run relationship among the variables. The results from a panel-mean-group model with a correction for common correlated effects show that financial development, institutional quality and globalization have significantly positive effects on long-run economic growth for the entire sample of countries. Further, looking at different income levels the empirical evidence shows that in low-income countries financial development, institutional quality and globalization have a positive impact on long-run economic growth in the entire sample and also in low-income countries. This provides strong evidence that the impact of financial development on economic growth is heterogeneous across income levels. Moreover, the interaction between financial development and institutional quality has a negative and significant effect on economic growth. This implies that either financial development or institutional quality can help boost economic growth.


Financial development Institutional quality Globalization Economic growth Dynamic common correlated effect 


  1. Acemoglu, D. (2006). Modeling Inefficient Institutions. Cambridge, MA: National Bureau of Economic Research.CrossRefGoogle Scholar
  2. Acemoglu, D. and S. Johnson (2005). Unbundling Institutions. Journal of Political Economy, 113(5): 949–995.CrossRefGoogle Scholar
  3. Acemoglu, D. and J.A. Robinson (2008). Persistence of Power, Elites, and Institutions. The American Economic Review, 98(1): 267–293.CrossRefGoogle Scholar
  4. Acemoglu, D. and J.A. Robinson (2010). The Role of Institutions in Growth and Development. World Bank Publications.Google Scholar
  5. Acemoglu, D. and J.A. Robinson (2013). Why Nations Fail: The Origins of Power, Prosperity, and Poverty. Crown Business.Google Scholar
  6. Adu, G., G. Marbuah, and J.T. Mensah (2013). Financial Development and Economic Growth in Ghana: Does the Measure of Financial Development Matter? Review of Development Finance, 3(4): 192–203.CrossRefGoogle Scholar
  7. Aghion, P., P. Bacchetta, R. Ranciere, and K. Rogoff (2009). Exchange Rate Volatility and Productivity Growth: The Role of Financial Development. Journal of Monetary Economics, 56(4): 494–513.CrossRefGoogle Scholar
  8. Aghion, P., P. Howitt, and D. Mayer-Foulkes (2005). The Effect of Financial Development on Convergence: Theory and Evidence. The Quarterly Journal of Economics, 120(1): 173–222.Google Scholar
  9. Akinlo, A.E. and T. Egbetunde (2010). Financial Development and Economic Growth: The Experience of 10 Sub-Saharan African Countries Revisited. The Review of Finance and Banking, 2(1): 17–28.Google Scholar
  10. Al-Yousif, Y.K. (2002). Financial Development and Economic Growth: Another Look at the Evidence from Developing Countries. Review of Financial Economics, 11(2): 131–150.CrossRefGoogle Scholar
  11. Alfaro, L., A. Chanda, S. Kalemli-Ozcan, and S. Sayek (2004). FDI and Economic Growth: The Role of Local Financial Markets. Journal of International Economics, 64(1): 89–112.CrossRefGoogle Scholar
  12. Allen, F. and E. Carletti (2006). Credit Risk Transfer and Contagion. Journal of Monetary Economics, 53(1): 89–111.CrossRefGoogle Scholar
  13. Arcand, J.L., E. Berkes, and U. Panizza (2012). Too Much Finance? IMF Working Paper WP/12/161.Google Scholar
  14. Arestis, P. and P. Demetriades (1997). Financial Development and Economic Growth: Assessing the Evidence. The Economic Journal, 107(442): 783–799.CrossRefGoogle Scholar
  15. Beck, T., H. Degryse, and C. Kneer (2014). Is More Finance Better? Disentangling Intermediation and Size Effects of Financial Systems. Journal of Financial Stability, 10: 50–64.CrossRefGoogle Scholar
  16. Beck, T., R. Levine, and N. Loayza (2000). Finance and the Sources of Growth. Journal of Financial Economics, 58(1): 261–300.CrossRefGoogle Scholar
  17. Bencivenga, V.R. and B.D. Smith (1991). Financial Intermediation and Endogenous Growth. The Review of Economic Studies, 58(2): 195–209.CrossRefGoogle Scholar
  18. Bencivenga, V.R., B.D. Smith, and R.M. Starr (1995). Transactions Costs, Technological Choice, and Endogenous Growth. Journal of Economic Theory, 67(1): 153–177.CrossRefGoogle Scholar
  19. Bolton, P., T. Santos, and J.A. Scheinkman (2016). Cream Skimming in Financial Markets. The Journal of Finance, 71(2): 709–736.CrossRefGoogle Scholar
  20. Bond, S. and M. Eberhardt (2013). Accounting for Unobserved Heterogeneity in Panel Time Series Models. Universidad de Oxford, Inédito.Google Scholar
  21. Boyd, J.H. and E.C. Prescott (1986). Financial Intermediary-Coalitions. Journal of Economic Theory, 38(2): 211–232.CrossRefGoogle Scholar
  22. Bozoki, E. and M. Richter (2016). Entrepreneurship, Institutions and Economic Growth: A Quantitative Study About the Moderating Effects of Institutional Dimensions on the Relationship of Necessity-and Opportunity Motivated Entrepreneurship and Economic Growth. Sweden: Jönköping International Business School, Jönköping University.Google Scholar
  23. Calderón, C. and L. Liu (2003). The Direction of Causality Between Financial Development and Economic Growth. Journal of Development Economics, 72(1): 321–334.CrossRefGoogle Scholar
  24. Cecchetti, S.G. and E. Kharroubi (2012). Reassessing the Impact of Finance on Growth. Bank for International Settlement. BIS Working Papers No 381.Google Scholar
  25. Christopoulos, D.K. and E.G. Tsionas (2004). Financial Development and Economic Growth: Evidence from Panel Unit Root and Cointegration Tests. Journal of Development Economics, 73(1): 55–74.CrossRefGoogle Scholar
  26. Chudik, A. and M.H. Pesaran (2015). Common Correlated Effects Estimation of Heterogeneous Dynamic Panel Data Models with Weakly Exogenous Regressors. Journal of Econometrics, 188(2): 393–420.CrossRefGoogle Scholar
  27. Chudik, A., K. Mohaddes, M.H. Pesaran, and M. Raissi (2015). Long-Run Effects in Large Heterogenous Panel Data Models with Cross-Sectionally Correlated Errors. Cambridge University, UK.Google Scholar
  28. Cojocaru, L., E.M. Falaris, S.D. Hoffman, and J.B. Miller (2016). Financial System Development and Economic Growth in Transition Economies: New Empirical Evidence from the CEE and CIS Countries. Emerging Markets Finance and Trade, 52(1): 223–236.CrossRefGoogle Scholar
  29. De Gregorio, J. (1996). Borrowing Constraints, Human Capital Accumulation, and Growth. Journal of Monetary Economics, 37(1): 49–71.CrossRefGoogle Scholar
  30. De Gregorio, J. and P.E. Guidotti (1995). Financial Development and Economic Growth. World Development, 23(3): 433–448.CrossRefGoogle Scholar
  31. Deidda, L. and B. Fattouh (2002). Non-linearity Between Finance and Growth. Economics Letters, 74(3): 339–345.CrossRefGoogle Scholar
  32. Demetriades, P. and S. Andrianova (2004). Finance and Growth: What We Know and What We Need to Know. Financial Development and Economic Growth: 38–65. Springer.Google Scholar
  33. Demetriades, P. and S. Law (2006). Finance, Institutions and Economic Development. International Journal of Finance and Economics, 11(3): 245.CrossRefGoogle Scholar
  34. Demetriades, P.O. and K.A. Hussein (1996). Does Financial Development Cause Economic Growth? Time-Series Evidence From 16 Countries. Journal of Development Economics, 51(2): 387–411.CrossRefGoogle Scholar
  35. Devereux, M.B. and G.W. Smith (1994). International Risk Sharing and Economic Growth. International Economic Review, 35(3): 535–550.CrossRefGoogle Scholar
  36. Ditzen, J. (2016). ‘xtdcce: Estimating Dynamic Common Correlated Effects in Stata’, in United Kingdom Stata Users’ Group Meetings 2016 (No. 08). Stata Users.Google Scholar
  37. Donaubauer, J., E. Neumayer, and P. Nunnenkamp (2016). Financial Market Development in Host and Source Countries and Its Effects on Bilateral FDI. Kiel Working Paper 2029.Google Scholar
  38. Dreher, A. (2006). Does Globalization Affect Growth? Evidence from a New Index of Globalization. Applied Economics, 38(10): 1091–1110.CrossRefGoogle Scholar
  39. Dreher, A., Gaston, N. et al. (2008). Measuring Globalization: Gauging its Consequences. New York: Springer.Google Scholar
  40. Ductor, L. and D. Grechyna (2015). Financial Development, Real Sector, and Economic Growth. International Review of Economics & Finance, 37: 393–405.CrossRefGoogle Scholar
  41. Eberhardt, M. (2012). Estimating Panel Time-Series Models with Heterogeneous Slopes. Stata Journal, 12(1): 61.Google Scholar
  42. Effiong, E. (2015). Financial Development, Institutions and Economic Growth: Evidence from Sub-Saharan Africa. Department of Economics, University of Uyo.Google Scholar
  43. Engle, R.F. and C.W. Granger (1987). Co-integration and Error Correction: Representation, Estimation, and Testing. Econometrica: Journal of the Econometric Society: 251–276.CrossRefGoogle Scholar
  44. Everaert, G. and T. De Groote (2016). Common Correlated Effects Estimation of Dynamic Panels with Cross-Sectional Dependence. Econometric Reviews, 35(3): 428–463.CrossRefGoogle Scholar
  45. Friedman, M. and A.J. Schwartz (2008). A Monetary History of the United States, 18671960. New Jersey: Princeton University Press.Google Scholar
  46. Gai, P., S. Kapadia, S. Millard, and A. Perez (2008). Financial Innovation, Macroeconomic Stability and Systemic Crises. The Economic Journal, 118(527): 401–426.CrossRefGoogle Scholar
  47. Galor, O. and J. Zeira (1993). Income Distribution and Macroeconomics. The Review of Economic Studies, 60(1): 35–52.CrossRefGoogle Scholar
  48. Gennaioli, N., A. Shleifer, and R. Vishny (2012). Neglected Risks, Financial Innovation, and Financial Fragility. Journal of Financial Economics, 104(3): 452–468.CrossRefGoogle Scholar
  49. Goldsmith, R.W. (1969). Financial Structure and Development. New Haven, CT: Yale University Press.Google Scholar
  50. Greenwood, J. and B. Jovanovic (1990). Financial Development, Growth, and the Distribution of Income. Journal of political Economy, 98: 1076–1107.CrossRefGoogle Scholar
  51. Greenwood, J., J.M. Sanchez, and C. Wang (2013). Quantifying the Impact of Financial Development on Economic Development. Review of Economic Dynamics, 16(1): 194–215.CrossRefGoogle Scholar
  52. Harrison, P., O. Sussman, and J. Zeira (1999). Finance and Growth: Theory and New Evidence. Handbook of Economic Growth, Chapter 12, Volume 1A, 865–934.Google Scholar
  53. Hassan, M.K., B. Sanchez, and J.S. Yu (2011). Financial Development and Economic Growth: New Evidence from Panel Data. The Quarterly Review of Economics and Finance, 51(1): 88–104.CrossRefGoogle Scholar
  54. Hermes, N. and R. Lensink (2003). Foreign Direct Investment, Financial Development and Economic Growth. The Journal of Development Studies, 40(1): 142–163.CrossRefGoogle Scholar
  55. Huang, H.C. and S.C. Lin (2009). Non-linear Finance–Growth Nexus. Economics of Transition, 17(3): 439–466.CrossRefGoogle Scholar
  56. Jappelli, T. and M. Pagano (1994). Saving, Growth, and Liquidity Constraints. The Quarterly Journal of Economic, 109(1): 83–109. Available at: Scholar
  57. Kaminsky, G.L. and C.M. Reinhart (1999). The Twin Crises: The Causes of Banking and Balance-of-Payments Problems. American Economic Review: 473–500.CrossRefGoogle Scholar
  58. Kargbo, S.M. and P.A. Adamu (2009). Financial Development and Economic Growth in Sierra Leone. Journal of Monetary Economics Integration, 9(2): 30–61.Google Scholar
  59. Khan, M.S. and A.S. Senhadji (2003). Financial Development and Economic Growth: A Review and New Evidence. Journal of African Economies, 12(suppl 2): ii89–ii110.CrossRefGoogle Scholar
  60. King, R.G. and R. Levine (1993). Finance, Entrepreneurship and Growth. Journal of Monetary Economics, 32(3): 513–542.CrossRefGoogle Scholar
  61. Krasniqi, B.A. and S. Desai (2016). Institutional Drivers of High-Growth Firms: Country-Level Evidence from 26 Transition Economies. Small Business Economics, 47(4): 1075–1094.CrossRefGoogle Scholar
  62. Law, S.H., W. Azman-Saini, and M.H. Ibrahim (2013). Institutional Quality Thresholds and the Finance–Growth Nexus. Journal of Banking & Finance, 37(12): 5373–5381.CrossRefGoogle Scholar
  63. Law, S.H. and N. Singh (2014). Does Too Much Finance Harm Economic Growth? Journal of Banking & Finance, 41: 36–44.CrossRefGoogle Scholar
  64. Le, T.H., J. Kim, and M. Lee (2016). Institutional Quality, Trade Openness, and Financial Sector Development in Asia: An Empirical Investigation. Emerging Markets Finance and Trade, 52(5): 1047–1059.CrossRefGoogle Scholar
  65. LeMay-Boucher, P. and C. Rommerskirchen (2015). An Empirical Investigation Into the Europeanization of Fiscal Policy. Comparative European Politics, 13(4): 450–470.CrossRefGoogle Scholar
  66. León-Ledesma, M.A., P. McAdam, and A. Willman (2015). Production Technology Estimates and Balanced Growth. Oxford Bulletin of Economics and Statistics, 77(1): 40–65.CrossRefGoogle Scholar
  67. Levine, R., N. Loayza, and T. Beck (2000). Financial Intermediation and Growth: Causality and Causes. Journal of Monetary Economics, 46(1): 31–77.CrossRefGoogle Scholar
  68. Levine, R. and S. Zervos (1996). Stock Market Development and Long-Run Growth. World Bank Economic Review, 10(2): 323–339.CrossRefGoogle Scholar
  69. Levine, R. and S. Zervos. (1998). Stock Markets, Banks, and Economic Growth. American Economic Review: 537–558.Google Scholar
  70. Loayza, N.V. and R. Ranciere (2006). Financial Development, Financial Fragility, and Growth. Journal of Money, Credit and Banking: 1051–1076.CrossRefGoogle Scholar
  71. Lu, X., K. Guo, Z. Dong, and X. Wang (2017). Financial Development and Relationship Evolvement Among Money Supply, Economic Growth and Inflation: A Comparative Study from the US and China. Applied Economics, 49(10): 1032–1045.CrossRefGoogle Scholar
  72. Lucas Jr, R.E. (1988). On the Mechanics of Economic Development. Journal of Monetary Economics, 22(1): 3–42.CrossRefGoogle Scholar
  73. Luintel, K.B., M. Khan, P. Arestis, and K. Theodoridis (2008). Financial Structure and Economic Growth. Journal of Development Economics, 86(1): 181–200.CrossRefGoogle Scholar
  74. Maddala, G.S. and S. Wu (1999). A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test. Oxford Bulletin of Economics and Statistics, 61(S1): 631–652.CrossRefGoogle Scholar
  75. Mankiw, N.G., D. Romer, and D.N. Weil (1992). A Contribution to the Empirics of Economic Growth. The Quarterly Journal of Economics, 107(2): 407–437.CrossRefGoogle Scholar
  76. Masten, A.B., F. Coricelli, and I. Masten (2008). Non-linear Growth Effects of Financial Development: Does Financial Integration Matter? Journal of International Money and Finance, 27(2): 295–313.CrossRefGoogle Scholar
  77. McNabb, K. and P. LeMay-Boucher (2014). Tax Structures, Economic Growth and Development. ICTD Working Paper 22.Google Scholar
  78. Menyah, K., S. Nazlioglu, and Y. Wolde-Rufael (2014). Financial Development, Trade Openness and Economic Growth in African Countries: New Insights from a Panel Causality Approach. Economic Modelling, 37: 386–394.CrossRefGoogle Scholar
  79. Neal, T. (2013). Using Panel Co-Integration Methods To Understand Rising Top Income Shares. The Economic Record, 89(284): 83–98.CrossRefGoogle Scholar
  80. Nelson, C.R. and C.R. Plosser (1982). Trends and Random Walks in Macroeconmic Time Series: Some Evidence and Implications. Journal of Monetary Economics, 10(2): 139–162.CrossRefGoogle Scholar
  81. Newey, W.K. and K.D. West (1994). Automatic Lag Selection in Covariance Matrix Estimation. The Review of Economic Studies, 61(4): 631–653.CrossRefGoogle Scholar
  82. Ng, A., M.H. Ibrahim, and A. Mirakhor (2016). Does Trust Contribute to Stock Market Development? Economic Modelling, 52: 239–250.CrossRefGoogle Scholar
  83. Obstfeld, M. (1994). Risk-Taking, Global Diversification, and Growth. American Economic Review, 84(5): 1310–1329.Google Scholar
  84. Odedokun, M.O. (1996). Alternative Econometric Approaches for Analysing the Role of the Financial Sector in Economic Growth: Time-Series Evidence from LDCs. Journal of Development Economics, 50(1): 119–146.CrossRefGoogle Scholar
  85. Omri, A., S. Daly, C. Rault, and A. Chaibi (2015). Financial Development, Environmental Quality, Trade and Economic Growth: What Causes What in MENA Countries. Energy Economics, 48: 242–252.CrossRefGoogle Scholar
  86. Pedroni, P. (1999). Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors. Oxford Bulletin of Economics and Statistics, 61(s1): 653–670.CrossRefGoogle Scholar
  87. Pedroni, P. (2001). ‘Fully Modified OLS for Heterogeneous Cointegrated Panels’, in Nonstationary Panels, Panel Cointegration, and Dynamic Panels, Volume 15. Emerald Group Publishing Limited, Elsevier Science Inc, pp. 93–130.Google Scholar
  88. Pedroni, P. (2004). Panel Cointegration: Asymptotic and Finite Sample Properties of Pooled Time Series Tests with an Application to the PPP Hypothesis. Econometric Theory, 20(03): 597–625.CrossRefGoogle Scholar
  89. Persyn, D. and J. Westerlund (2008). Error-Correction-Based Cointegration Tests for Panel Data. Stata Journal, 8(2): 232–241.Google Scholar
  90. Pesaran, M.H. (2004). General Diagnostic Tests for Cross Section Dependence in Panels. Faculty of Economics, Cambridge University.Google Scholar
  91. Pesaran, M.H. (2006). Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure. Econometrica, 74(4): 967–1012.CrossRefGoogle Scholar
  92. Pesaran, M.H. (2007). A Simple Panel Unit Root Test in the Presence of Cross-Section Dependence. Journal of Applied Econometrics, 22(2): 265–312.CrossRefGoogle Scholar
  93. Pesaran, M.H. (2015). Testing Weak Cross-Sectional Dependence in Large Panels. Econometric Reviews, 34(6–10): 1089–1117.CrossRefGoogle Scholar
  94. Pesaran, M.H. and R. Smith (1995). Estimating Long-Run Relationships from Dynamic Heterogeneous Panels. Journal of Econometrics, 68(1): 79–113.CrossRefGoogle Scholar
  95. Pesaran, M.H., Y. Shin, and R.P. Smith (1999). Pooled Mean Group Estimation of Dynamic Heterogeneous Panels. Journal of the American Statistical Association, 94(446): 621–634.CrossRefGoogle Scholar
  96. Philippon, T. (2010). Financiers Versus Engineers: Should the Financial Sector be Taxed or Subsidized? American Economic Journal: Macroeconomics, 2(3): 158–182.Google Scholar
  97. Rafindadi, A.A. and I. Ozturk (2016). Effects of Financial Development, Economic Growth and Trade on Electricity Consumption: Evidence from Post-Fukushima Japan. Renewable and Sustainable Energy Reviews, 54: 1073–1084.CrossRefGoogle Scholar
  98. Rahman, M.M., M. Shahbaz, and A. Farooq (2015). Financial Development, International Trade, and Economic Growth in Australia: New Evidence from Multivariate Framework Analysis. Journal of Asia-Pacific Business, 16(1): 21–43.CrossRefGoogle Scholar
  99. Rodríguez-Pose, A. (2013). Do Institutions Matter for Regional Development? Regional Studies, 47(7): 1034–1047.CrossRefGoogle Scholar
  100. Rodrik, D. and A. Subramanian (2003). The Primacy of Institutions. Finance and Development, 40(2): 31–34.Google Scholar
  101. Rousseau, P.L. and P. Wachtel (2011). What is Happening to the Impact of Financial Deepening on Economic Growth? Economic Inquiry, 49(1): 276–288.CrossRefGoogle Scholar
  102. Sahay, R., C. Martin, N. Papa, B. Adolfo, B. Ran, A. Diana, G. Yuan, K. Annette, N. Lam, S. Christian, S. Katsiaryna, and R. Seyed (2015). Rethinking Financial Deepening: Stability and Growth in Emerging Markets. IMF Staff Discussion Note 15/08. Washington, DC: International Monetary Fund.CrossRefGoogle Scholar
  103. Saint-Paul, G. (1992). Technological Choice, Financial Markets and Economic Development. European Economic Review, 36(4): 763–781.CrossRefGoogle Scholar
  104. Samargandi, N., J. Fidrmuc, and S. Ghosh (2015). Is the Relationship Between Financial Development and Economic Growth Monotonic? Evidence from a Sample of Middle-Income Countries. World Development, 68: 66–81.CrossRefGoogle Scholar
  105. Santomero, A.M. and J.J. Seater (2000). Is there an Optimal Size for the Financial Sector? Journal of Banking & Finance, 24(6): 945–965.CrossRefGoogle Scholar
  106. Sarmidi, T., S. Hook Law, and Y. Jafari (2014). Resource Curse: New Evidence on the Role of Institutions. International Economic Journal, 28(1): 191–206.CrossRefGoogle Scholar
  107. Seven, U. and Y. Coskun (2016). Does Financial Development Reduce Income Inequality and Poverty? Evidence from Emerging Countries. Emerging Markets Review, 26: 34–63.CrossRefGoogle Scholar
  108. Shahbaz, M., S. Khan, and M.I. Tahir (2013). The Dynamic Links Between Energy Consumption, Economic Growth, Financial Development and Trade in China: Fresh Evidence from Multivariate Framework Analysis. Energy Economics, 40: 8–21.CrossRefGoogle Scholar
  109. Shahbaz, M. and M.M. Rahman (2012). The Dynamic of Financial Development, Imports, Foreign Direct Investment and Economic Growth: Cointegration and Causality Analysis in Pakistan. Global Business Review, 13(2): 201–219.CrossRefGoogle Scholar
  110. Shen, C.H. and C.C. Lee (2006). Same Financial Development Yet Different Economic Growth: Why? Journal of Money, Credit and Banking: 1907–1944.CrossRefGoogle Scholar
  111. Stiglitz, J.E. and A. Weiss (1983). Incentive Effects of Terminations: Applications to the Credit and Labor Markets. The American Economic Review, 73(5): 912–927.Google Scholar
  112. Sussman, O. (1993). A Theory of Financial Development. Finance and Development: Issues and Experience, 29. Faculty of Economics, University of Oxford.Google Scholar
  113. Svirydzenka, K. (2016). Introducing a New Broad-Based Index of Financial Development. IMF Working Paper WP/16/5.CrossRefGoogle Scholar
  114. The World Bank (2015). World Bank Country and Lending Group. Avaliable at:
  115. Valickova, P., T. Havranek, and R. Horvath (2015). Financial Development and Economic Growth: A Meta-Analysis. Journal of Economic Surveys, 29(3): 506–526.CrossRefGoogle Scholar
  116. Westerlund, J. (2007). Testing for Error Correction in Panel Data. Oxford Bulletin of Economics and Statistics, 69(6): 709–748.CrossRefGoogle Scholar
  117. Westerlund, J. and D.L. Edgerton (2008). A Simple Test for Cointegration in Dependent Panels with Structural Breaks. Oxford Bulletin of Economics and Statistics, 70(5): 665–704.CrossRefGoogle Scholar
  118. Zeira, J. (1999). Informational Overshooting, Booms, and Crashes. Journal of Monetary Economics, 43(1): 237–257.CrossRefGoogle Scholar
  119. Zerihun, T. (2014). Human Capital and Economic Growth: Causality and Co–integration Analysis. Jimma University, Ethiopia.Google Scholar
  120. Zhang, J., L. Wang, and S. Wang (2012). Financial Development and Economic Growth: Recent Evidence from China. Journal of Comparative Economics, 40(3): 393–412.CrossRefGoogle Scholar

Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Kahsay Berhane
    • 1
  1. 1.Department of EconomicsAddis Ababa UniversityAddis AbabaEthiopia

Personalised recommendations