Causal Relationship Between Financial Sector Development in SMEs & Economic Growth in Southern Africa Region-Reference-Cited by-同舟云学术

Causal Relationship Between Financial Sector Development in SMEs & Economic Growth in Southern Africa Region

Published:2021-06-25 Issue: Volume:18 Page:996-1018
ISSN:2224-2899
Container-title:WSEAS TRANSACTIONS ON BUSINESS AND ECONOMICS
language:en
Short-container-title:

Author:

Chivandi Abigail¹,Makumbe Happiness²,Samuel Olorunjuwon³

Affiliation:

1. Faculty of Commerce, Law and Management School of Business Sciences, University of the Witwatersrand No. 1 Jan Smuts Ave, Braamfontein, Johannesburg, 2000,SOUTH AFRICA

2. Faculty of Commerce, Law and Management School of Economic and Business Sciences, University of the Witwatersrand, No. 1 Jan Smuts Ave, Braamfontein, Johannesburg, 2000,SOUTH AFRICA

3. Faculty of Commerce, Law and Management, School of Business Sciences, University of the Witwatersrand No. 1 Jan Smuts Ave, Braamfontein, Johannesburg, 2000, South Africa,,SOUTH AFRICA

Abstract

This study explores causal relationship between financial sector development in SMEs and economic growth in Zimbabwe using annual time series and the Error Correction Model (ECM) framework. Monetary sector improvement and financial development stayed a controversial issue in Southern African nations. Market analysts have distinctive hypothetical and exact perspectives on the causal connection between monetary sector improvement and financial development. support supply driving speculation that monetary sector improvement prompts financial development & credit to request pulling speculation which proposes that monetary improvement results from financial development. Study made use of Unit Root Tests, Cointegration, ECM and Granger Causality Tests. Empirical findings revealed a bidirectional relationship between financial sector development in SMEs, economic & business growth. Business & Economic Growth enhance a strong and flexible legal system allowing banks to allocate resources (credit) more efficiently to SMEs. Credit should be accessed by all enterprise fairly to encourage the development of indigenous businesses through SMEs.

Publisher

World Scientific and Engineering Academy and Society (WSEAS)

Subject

Economics and Econometrics,Finance,Business and International Management

Reference35 articles.

1. Asteriou, D. and Hall, S. G. (2007). Applied Econometrics, New York, Palgrave MacMillan.

2. Atkins, R. L. (2006). Financial Development and Economic Growth in Transition Countries in Southern Europe, Andrew Young School of Policy studies.

3. Aziakpono, M. J. (2003). Financial Intermediation and Economic Growth in Economic and Monetary Union – The case of SACU and CMA, Department of Economics, National University of Lesotho, Lesotho.

4. Aziakpono, M. J. (2004). Financial Development and Economic Growth in Southern Africa, Department of Economics, National University of Lesotho, Lesotho.

5. Bagehot, W. (1962), Lombard Street, Homewood, IL: Richard Irwin, 1962 edition.

Cited by 3 articles. 订阅此论文施引文献订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献

1. PENGARUH DANA PIHAK KETIGA PERBANKAN SYARIAH TERHADAP PERTUMBUHAN EKONOMI DI INDONESIA: A Theoritical Approach;JAE (JURNAL AKUNTANSI DAN EKONOMI);2024-03-21

2. The Influence of Globalization Dimensions on Economic Growth in ASEAN;WSEAS TRANSACTIONS ON SYSTEMS;2023-03-24

3. Influencing Factors of Undergrowth Economic Growth From the Perspective of Linear Analysis;International Journal of Circuits, Systems and Signal Processing;2021-08-31