n African Finance Journal - A causality analysis between financial development and economic growth for Botswana
|Article Title||A causality analysis between financial development and economic growth for Botswana|
|© Publisher:||AfricaGrowth Institute|
|Journal||African Finance Journal|
|Author||Joel Hinaunye Eita and Andre C. Jordaan|
|Publication Date||Jan 2010|
|Pages||72 - 89|
This paper analyses the causal relationship between financial development and economic growth in Botswana for the period 1977-2006, using Granger causality through co-integrated Vector Auto-regression methods and two proxies for financial development. Results show that there is a stable long-run relationship between financial development and economic growth regardless of which proxy for financial development is used. Further, results provide evidence of supply-leading and demand-leading views of finance-growth nexus; thus, suggesting that enhancement of both financial markets and real economy's activity would be an advisable development strategy for Botswana.
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