Examining Finance-Growth Nexus: Empirical Evidence From the Sub-Regional Economies of Africa

This paper examined finance-growth nexus in the finance industry and influencing factors of economic indicators which deliberate on performance Solow Growth model to prove actuality financial development (FD) inside growth (EG) model, based regional data from 1980 2017 Africa. We applied econometric method GMM style panel vector autoregressive (PVAR) quantile regression (PQR). With optimal outcome, review shows that influence nexus. The results show high help strengthen nexus, whereas low hinder it. PVAR present a mixed effect terms connection marginal significance, indicating FD has varied impact growth. Last, granger causality two-way causal association amid Western, Central, Eastern, Southern African economies unidirectional link Northern policy conclusion is gain long-term benefits FD, countries should strive for steady stability. To attain required stability, it may be important use suitable fiscal monetary policies.