Debate on the financial structure of and economic growth in Sub-Saharan Africa: The moderating effect of institutional quality in an income-based panel
Analysis explores how institutional quality affects economic growth related to financial structure in Sub-Saharan Africa, suggesting policy improvements.
Key Points
Economic growth is influenced by financial structure, showing varied effects in low- and middle-income countries.
Among low-income countries, a market-oriented financial structure boosts growth, while banking systems hinder it.
Employing fixed-effects generalized method of moments, the analysis spans 33 economies from 2006 to 2022.
Strengthening institutional quality may support better financial structures and economic performance.