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The effect of financial development on economic growth: the case of South Africa
This study examines the effect of financial development on economic growth in South Africa. South Africa is an interesting case study, as it provides a relatively rich environment in terms of data. While the finance and business sector has grown significantly in the last ten years becoming a major c...
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| Format: | Thesis |
| Language: | English |
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School of Economics
2022
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| _version_ | 1867613186417491968 |
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| access_status_str | Open Access |
| author | Kawamya, Ackim |
| author2 | Nikolaidou, Eftychia |
| author_browse | Kawamya, Ackim Nikolaidou, Eftychia |
| author_facet | Nikolaidou, Eftychia Kawamya, Ackim |
| author_sort | Kawamya, Ackim |
| collection | Thesis |
| description | This study examines the effect of financial development on economic growth in South Africa. South Africa is an interesting case study, as it provides a relatively rich environment in terms of data. While the finance and business sector has grown significantly in the last ten years becoming a major contributor to gross domestic product, the South African economy has been struggling to register positive output in the preceding years. The study utilizes an Autoregressive Distributed Lag approach to cointegration and a Solow model to consider the role of banks, financial institutions, and financial markets independently. The results reveal that financial institutions have a considerable role in fostering economic development in the long run in South Africa. Conversely, financial market indicators do not have long run effects on growth in South Africa and in the short run, financial markets negatively influence growth. High foreign participation in the financial markets including ease of capital flows and currency volatility could be reasons for this result. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/36612 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:32:08.355Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2022 |
| publishDateRange | 2022 |
| publishDateSort | 2022 |
| publisher | School of Economics |
| publisherStr | School of Economics |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/36612 The effect of financial development on economic growth: the case of South Africa Kawamya, Ackim Nikolaidou, Eftychia Financial Development Economic Growth South Africa ARDL This study examines the effect of financial development on economic growth in South Africa. South Africa is an interesting case study, as it provides a relatively rich environment in terms of data. While the finance and business sector has grown significantly in the last ten years becoming a major contributor to gross domestic product, the South African economy has been struggling to register positive output in the preceding years. The study utilizes an Autoregressive Distributed Lag approach to cointegration and a Solow model to consider the role of banks, financial institutions, and financial markets independently. The results reveal that financial institutions have a considerable role in fostering economic development in the long run in South Africa. Conversely, financial market indicators do not have long run effects on growth in South Africa and in the short run, financial markets negatively influence growth. High foreign participation in the financial markets including ease of capital flows and currency volatility could be reasons for this result. 2022-07-04T18:38:39Z 2022-07-04T18:38:39Z 2022 2022-06-10T10:39:23Z Master Thesis Masters MCom http://hdl.handle.net/11427/36612 eng application/pdf School of Economics Faculty of Commerce |
| spellingShingle | Financial Development Economic Growth South Africa ARDL Kawamya, Ackim The effect of financial development on economic growth: the case of South Africa |
| thesis_degree_str | Master's |
| title | The effect of financial development on economic growth: the case of South Africa |
| title_full | The effect of financial development on economic growth: the case of South Africa |
| title_fullStr | The effect of financial development on economic growth: the case of South Africa |
| title_full_unstemmed | The effect of financial development on economic growth: the case of South Africa |
| title_short | The effect of financial development on economic growth: the case of South Africa |
| title_sort | effect of financial development on economic growth the case of south africa |
| topic | Financial Development Economic Growth South Africa ARDL |
| url | http://hdl.handle.net/11427/36612 |
| work_keys_str_mv | AT kawamyaackim theeffectoffinancialdevelopmentoneconomicgrowththecaseofsouthafrica AT kawamyaackim effectoffinancialdevelopmentoneconomicgrowththecaseofsouthafrica |