1. NJIE IMMACULATE LUM - Banking and Finance Department, University of Nigeria Nsukka.
2. DINKA’A, ADRIAN YEBIT - Banking and Finance Department, University of Nigeria Nsukka.
3. ASEH VICTOR TEMBENG - Banking and Finance Department, University of Nigeria Nsukka.
4. KESUH, JUDE THADDEUS - Banking and Finance Department, University of Nigeria Nsukka.
5. JOSAPHAT UCHECHUKWU JOE ONWUMERE - Banking and Finance Department, University of Nigeria Nsukka.
This study investigates the impact of financial development on economic growth in Sub-Saharan Africa from 1990 to 2020. Secondary data from 10 Sub-Sahara African countries were obtained from world development indicators (WDI), comprehensive environmental information collection (CEIC) and world governance indicators (WGI) and analysed using the panel PMG / ARDL estimation technique. Economic growth was the dependent variable captured by the real GDP per capita growth rate (GDPGR). The independent variables were financial development (captured by Broad money, Credit to private sectors, stock market capitalisation and stock traded), gross fixed capital formation, population growth rate, institutional quality, government expenditures and trade openness. Findings revealed that certain financial development indicators, like credit to the private sector (CPS) and stock traded (STED), positively impacted economic growth (GDPGR) while other indicators, such as broad money supply (BM) and stock market capitalization (MCAP), had a negative effect on growth during the same period. The study recommends the strengthening of financial regulations, the promotion of private credit to the private sector, the reformation of stock markets, the encouragement of active stock trading, the improvement of institutional quality, and the adoption of FinTech solutions.
Financial Development, Financial System, Economic Growth, ARDL.