| ID | 186390 |
| Title Proper | Financial access and value added in Sub-Saharan Africa |
| Other Title Information | Empirical Evidence from the Agricultural, Manufacturing, and Service Sectors |
| Language | ENG |
| Author | Odhiambo, Nicholas M ; Asongu, Simplice A |
| Summary / Abstract (Note) | This research assesses the importance of financial access on value added in three economic sectors in 25 countries in Sub-Saharan Africa using data for the period 1980–2014. The empirical evidence is based on the Generalized Method of Moments. Financial access is measured with private domestic credit, while the three outcome variables are: value added in the agricultural, manufacturing, and service sectors, respectively. Enhancing financial access does not significantly improve value added in the agricultural and manufacturing sectors, while enhancing financial access improves value added in the service sector. An extended analysis shows that, in order for the positive net incidence of enhancing credit access on value added to the service sector to be maintained, complementary policies are required when domestic credit to the private sector is between 77.50 percent and 98.50 percent of GDP. Policy implications are discussed. |
| `In' analytical Note | World Affairs US Vol. 185, No.2; Summer 2022: p.359-382 |
| Journal Source | World Affairs US Vol: 185 No 2 |
| Key Words | Sub-Saharan Africa ; Financial Development ; Panel Data ; Service Sector ; Manufacturing Sector ; Value Added ; Agricultural Sector ; Thresholds ; Economic Output |