Department of Financial Management Technology, Federal University of Technology, Owerri, Imo State, Nigeria.
Research Article
World Journal of Advanced Research and Reviews, 2023, 20(02), 1055-1063
Received on 08 October 2023; revised on 19 November 2023; accepted on 21 November 2023
This study investigated the influence of banking sector on economic growth in sub-Saharan Africa (SSA) during the post financial crises of 2007/2008. In the last one and the half decades, most SSA countries have made remarkable strides in terms of the development of their banking sectors as well as enacting policies that will boost Africa’s economic growth as documented in various reports of the World Bank and International Monetary Fund (IMF. Despite all these positive scores and developments made by the banking sectors in Africa, growth has been hampered in the last one and the half decades. Moreover, most African countries witnessed unsteady and hampered growth in their economies during the period after the crises despite the adjudged weak linkages of banking sectors across Africa to the sub-prime mortgage market and asset-backed securities, and limited exposure to complex financial instruments among others. Thus, we utilized the Pooled Mean Group Autoregressive Distributed Lag (PMG/ARDL) estimation technique to analyze the secondary data spanning from 2009 to 2020. The empirical result revealed, among others, that the level of development of the banking sectors in the region influenced economic growth in the region during the aforesaid period. Furthermore, any short run deviation or shock is normally corrected in the long run at the speed of 82.85%. Curiously, this study revealed that financial deepening and the degree of monetization in the economies are the main drivers of short and long run growth in the post crises period. Thus, this study recommended that policy makers in the region should pay great attention to deepening their economies as this study has shown that it is the main driver of growth in the post financial crises economies of sub Saharan Africa.
Banking Sector Development; Economic Growth; PMG/ARDL; Sub-Saharan Africa
Preview Article PDF
Stanley Chigozie Duruibe, Oforegbunam Thaddeus Ebiringa, Chilaka Emmanuel Nwaimo and Erasmus Ejike Duru. An assessment of the impact of the banking sector on the economic growth of sub-Saharan African countries in the post financial crises. World Journal of Advanced Research and Reviews, 2023, 20(2), 1055-1063. Article DOI: https://doi.org/10.30574/wjarr.2023.20.2.2188