Institutions, credit markets and development in Sub-Saharan Africa

• Main Authors: Nyasha Mahonye, Kwaramba Marko, Coulibaly Amina
• Format: Article
• Language: English
• Published: LLC "CPC "Business Perspectives" 2016-12-01
• Series: Banks and Bank Systems
• Online Access: https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/8079/BBS_en_2016_04cont_Mahonye.pdf

This paper reviews the evidence on the impact of institutions and credit market on development outcomes. The study uses panel data techniques and the data is from 1995 to 2013. The results shows that the better the institutions, the higher the credit extension to the private sector and higher the level of economic development. This applies also to credit market. If credit market functions well, development is bound to increase. This has important implications for policy in Africa. Governments should aim to improve their institutions to increase the economic development of their countries. Also, improvement in markets, especially, credit access will increase development. Keywords: institutions, credit market, fixed effects, development and Africa. JEL Classification: E5, C23, O16, G1, G21