- Title
- An investigation of the link between Financial sector development and economic growth in Zimbabwe from 1980 -2016
- Creator
- Machokoto, Sydney
- Subject
- Financial institutions-- Zimbambwe
- Subject
- Economic growth, development,planning -- Zimbabwe
- Date Issued
- 2020
- Date
- 2020
- Type
- Thesis
- Type
- Doctoral
- Type
- PhD
- Identifier
- http://hdl.handle.net/10948/49894
- Identifier
- vital:41814
- Description
- This study investigated the link between financial sector development and economic growth in Zimbabwe from 1980 to 2016 using the Auto Regressive Distributed Lag model. Market capitalization as a ratio of gross domestic product (GDP), bank credit to the private sector as a ratio of GDP and financial assets of microfinance as a ratio of GDP were used as proxy variables for financial sector development. Economic growth was measured by real GDP. The Granger causality test indicated bi-directional causality between access to financial services and economic growth in Zimbabwe in the long run. Market capitalization and bank credit to the private sector did not Granger cause economic growth in Zimbabwe. It was recommended that the government should promote the functioning of the capital market as it is the conduit for providing long term capital to businesses. Bank credit to the private sector was found to be statistically significant. It was recommended that the government should promote decentralization of the banking sector to rural areas. The proxy variables of financial development used were statistically significant in influencing economic growth. The findings from the study led to the recommendation to open additional microfinance companies in remote areas and to increase the supply of financial services and products. Empirical evidence indicates that the link between financial development and economic growth depends on the proxy variables of financial sector development used in econometric modelling. The model was tested for heteroscedasticity, serial correlation, stability and normality. The econometric tests conducted were all satisfactory. This made the model ideal for policy formulation and recommendation.
- Format
- xv, 279 leaves
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economic Sciences
- Language
- English
- Rights
- Nelson Mandela University
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NMU School for Economics, Development and Tourism
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | Machokoto, S.pdf | 2 MB | Adobe Acrobat PDF | View Details Download |