The role of financial development on infrastructure development and financing in Africa: a cross-country study
Date
2017
Authors
Vuza, S S
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Abstract
This study examines the nexus between financial development and infrastructure development and financing. To this end, we employ three panel estimation techniques – Fixed effects, Orthogonal deviation and First difference – to examine to investigate the relationship between financial development and infrastructure development for a panel of 28 African countries. In addition, MIDAS regression was employed to uncover the relationship between bond market development and infrastructure financing for selected African countries. Results indicate the financial development has a positive and statistically significant relationship on infrastructure development. This is however weak and suggest that more needs to be done to improve financial markets further in order for them to have a greater impact on infrastructure development. Surprisingly, we do not find any statistically significant relationship between financial development and infrastructure finance
Description
Masters in Finance and Investment
Research Report