Title: Financial development and manufactured exports: the African experience

Authors: Evelyn Wamboye; Rajen Mookerjee

Addresses: Department of Economics, Pennsylvania State University, DuBois, PA 15801, USA ' Department of Economics, Pennsylvania State University, Monaca PA 15061, USA

Abstract: Using a sample of 29 African countries for which adequate time series data are available this paper explores the nexus between financial development and manufactured exports. This particular relationship is especially important in the context of Africa since export diversification away from resources and agriculture is an important part of Africa's growth strategy. Our results show that in 11 countries financial development causes manufactured exports and manufactured exports causes financial development in seven countries. We then explore reasons for these findings and find that a rich and surprising set of factors explain our findings.

Keywords: financial development; Granger causality; manufactured exports; Africa; export diversification; exporting; emerging economies.

DOI: 10.1504/IJEPEE.2014.059898

International Journal of Economic Policy in Emerging Economies, 2014 Vol.7 No.1, pp.22 - 34

Received: 15 Aug 2013
Accepted: 09 Nov 2013
Published online: 26 Jul 2014 *

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