Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/262073 
Year of Publication: 
2022
Series/Report no.: 
AGDI Working Paper No. WP/22/009
Publisher: 
African Governance and Development Institute (AGDI), Yaoundé
Abstract: 
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 Generalised 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% and 98.50% of GDP. Policy implications are discussed.
Subjects: 
Economic Output
Financial Development
Sub-Saharan Africa
JEL: 
E23
F21
F30
O16
O55
Document Type: 
Working Paper

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