Financial development, human capital accumulation and economic growth: empirical evidence from the economic community of West African states

From the perspective of the endogenous growth models, the poor economic performance of the ECOWAS region can be traced to the low level of human capital accumulation in the region. However, recently, great attention has been paid to the role of financial development towards economic growth, by encou...

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Main Authors: Abubakar, Abdulsalam, Kassim, Salina, Yusoff, Mohammed
Format: Conference or Workshop Item
Language:English
Published: 2014
Subjects:
Online Access:http://irep.iium.edu.my/41982/
http://irep.iium.edu.my/41982/1/41982.pdf
id iium-41982
recordtype eprints
spelling iium-419822015-10-16T06:21:43Z http://irep.iium.edu.my/41982/ Financial development, human capital accumulation and economic growth: empirical evidence from the economic community of West African states Abubakar, Abdulsalam Kassim, Salina Yusoff, Mohammed H Social Sciences (General) HB Economic Theory HG Finance From the perspective of the endogenous growth models, the poor economic performance of the ECOWAS region can be traced to the low level of human capital accumulation in the region. However, recently, great attention has been paid to the role of financial development towards economic growth, by encouraging capital accumulation. But capital in this sense referred to only physical capital. Therefore, this study differ from others by investigating the link between financial development, human capital accumulation and economic growth in the ECOWAS. It employed panel cointegration approaches as well as fully modified OLS and dynamic OLS estimators and panel granger causality test. The results revealed that bank private credit and domestic private credit contribute significantly to economic growth in the ECOWAS, both directly and through their influence on human capital accumulation. Moreover, whereas bank credit Granger cause economic growth, bidirectional causality exist between domestic credit and economic growth. These results imply that providing access to credit to both enterprises and individuals, through appropriate financial policies, will encourage economic growth in the ECOWAS region. 2014 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/41982/1/41982.pdf Abubakar, Abdulsalam and Kassim, Salina and Yusoff, Mohammed (2014) Financial development, human capital accumulation and economic growth: empirical evidence from the economic community of West African states. In: Global Conference on Business and Social Science (GBSS 2014), 15-16 December 2014, Kuala Lumpur.
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic H Social Sciences (General)
HB Economic Theory
HG Finance
spellingShingle H Social Sciences (General)
HB Economic Theory
HG Finance
Abubakar, Abdulsalam
Kassim, Salina
Yusoff, Mohammed
Financial development, human capital accumulation and economic growth: empirical evidence from the economic community of West African states
description From the perspective of the endogenous growth models, the poor economic performance of the ECOWAS region can be traced to the low level of human capital accumulation in the region. However, recently, great attention has been paid to the role of financial development towards economic growth, by encouraging capital accumulation. But capital in this sense referred to only physical capital. Therefore, this study differ from others by investigating the link between financial development, human capital accumulation and economic growth in the ECOWAS. It employed panel cointegration approaches as well as fully modified OLS and dynamic OLS estimators and panel granger causality test. The results revealed that bank private credit and domestic private credit contribute significantly to economic growth in the ECOWAS, both directly and through their influence on human capital accumulation. Moreover, whereas bank credit Granger cause economic growth, bidirectional causality exist between domestic credit and economic growth. These results imply that providing access to credit to both enterprises and individuals, through appropriate financial policies, will encourage economic growth in the ECOWAS region.
format Conference or Workshop Item
author Abubakar, Abdulsalam
Kassim, Salina
Yusoff, Mohammed
author_facet Abubakar, Abdulsalam
Kassim, Salina
Yusoff, Mohammed
author_sort Abubakar, Abdulsalam
title Financial development, human capital accumulation and economic growth: empirical evidence from the economic community of West African states
title_short Financial development, human capital accumulation and economic growth: empirical evidence from the economic community of West African states
title_full Financial development, human capital accumulation and economic growth: empirical evidence from the economic community of West African states
title_fullStr Financial development, human capital accumulation and economic growth: empirical evidence from the economic community of West African states
title_full_unstemmed Financial development, human capital accumulation and economic growth: empirical evidence from the economic community of West African states
title_sort financial development, human capital accumulation and economic growth: empirical evidence from the economic community of west african states
publishDate 2014
url http://irep.iium.edu.my/41982/
http://irep.iium.edu.my/41982/1/41982.pdf
first_indexed 2023-09-18T20:59:56Z
last_indexed 2023-09-18T20:59:56Z
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