The impact of financial intermediation on economic growth in East African Community (EAC) and North African countries
2023 (English)Independent thesis Advanced level (degree of Master (One Year)), 20 credits / 30 HE credits
Student thesisAlternative title
Effekten av finansiell mellan händer på ekonomisk tillväxt i Östafrikanska gemenskapen (EAC) och Nordafrikanska länder (Swedish)
Abstract [en]
This thesis investigates the impact of financial intermediation on economic growth in two regions: the East African Community (EAC) countries (Burundi, Kenya, Tanzania, Rwanda, and Uganda) and North African countries (Algeria, Egypt, Morocco, and Tunisia). The study analyzes the regions employing a Granger causality test and explores if financial intermediation influences economic growth. An index that measures financial intermediation is created using Principal Component Analysis (PCA) and is used to capture the effect it has on economic growth in the two regions. The data used in the study is from 1990 to 2018. The results show that there is a short-run unidirectional relationship between financial intermediation and economic growth in EAC countries while financial intermediation does not Granger cause economic growth in North African countries. The result also shows that inflation has a short-run impact on growth in the North African countries.
Place, publisher, year, edition, pages
2023. , p. 51
Keywords [en]
EAC, North African, Financial intermediation, Economic growth, Granger causality
National Category
Economics
Identifiers
URN: urn:nbn:se:kau:diva-96355OAI: oai:DiVA.org:kau-96355DiVA, id: diva2:1787571
Subject / course
Economics
Educational program
Programme in Business and Economics
Supervisors
Examiners
2023-08-212023-08-142023-08-21Bibliographically approved