Does financial development promote export diversification in Sub-Saharan Africa?

• Autores: Richard Kofi Akoto, Charles Adjasii
• Localización: Journal of economic research, ISSN 1226-4261, Vol. 25, Nº 2, 2020, págs. 155-178
• Idioma: inglés
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• Resumen

  • This paper examines the effect of financial sector development on export diversification of 41 sub-Saharan Africa countries using data for the period 1995-2013. The empirical results using dynamic panel system generalized methods of moments (System-GMM) estimation technique show that high financial development promotes export diversification in sub-Saharan Africa. The finding underscores the importance of financial sector development policies in sub-Saharan Africa to stimulate export diversification. Specifically, it is necessary to increase the roll out of financial infrastructure across sub-Saharan Africa to widen the extent of financial access. Government should also ensure macroeconomic stability to support financial sector development in the various sub-Saharan Africa countries.