Financial development and private investment on inclusive growth in Sub-Saharan African countries: A second generation PARDL approach
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Abstract
The pursuit of inclusive growth necessitates a comprehensive strategy that addresses entrenched structural barriers curbing economic participation and overall well-being. At the heart of this endeavour lies the significance of a stable financial system. Such a system, by fostering financial inclusion, bolstering entrepreneurship, enabling long-term investments, and enhancing economic stability, holds the potential to bridge the disparities impeding inclusive growth. This study delves into the intricate interplay between financial development, investment, and the realization of inclusive growth. Utilizing data spanning 27 African countries from 2005 to 2021, this research employs the Augmented Group Mean (AGM). The findings illuminate the multifaceted impacts of financial development on gross domestic product per person employed, an indicator of inclusive growth. Importantly, the study underscores the pivotal role a stable financial system plays in fostering overall inclusive growth and creating a conducive environment for equitable economic participation and prosperity for all segments of society.
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