Financial Development and Economic Growth in Developing Countries

A New Empirical Evidence from Côte d’Ivoire

  • Kando Serge Gbagbeu Kyonggi University, South Korea
DOI: https://doi.org/10.30560/jems.v1n2p94
Keywords: financial development, economic growth, Autoregressive Distributed Lag, Vector Error Correction Model, causality

Abstract

In this study, we concern mainly about the short and long-run relationship between economic growth and financial development. We use a multi-steps methodology, namely the Autoregressive Distributed Lag (ARDL) approach and the Vector Error Correction Model (VECM) approach to test this relationship in Côte d’Ivoire from 1980 to 2014. Following our results, we conclude that there is a unidirectional causal relationship, both long run and short run, between GDP per capita and financial development index in Côte d’Ivoire running from economic growth to financial development.

Financial development and Economic growth in Côte d’Ivoire
Published
2018-10-14
Issue
Vol 1 No 2 (2018)
Section
Articles
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