Measuring Financial Development in Sub-Saharan Africa

Measuring Financial Development in Sub-Saharan Africa

A developed and well-functioning financial sector is a key component of an economy, facilitating the exchange of goods and services, mobilizing savings, allocating resources, and helping diversify risks. Since the work of Goldsmith (1969), McKinnon (1973), and Shaw (1973), a growing body of literatu...

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Hauptverfasser: E. Gelbard, Sérgio Pereira. Leite
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creator E. Gelbard
Sérgio Pereira. Leite
Sérgio Pereira. Leite
description A developed and well-functioning financial sector is a key component of an economy, facilitating the exchange of goods and services, mobilizing savings, allocating resources, and helping diversify risks. Since the work of Goldsmith (1969), McKinnon (1973), and Shaw (1973), a growing body of literature has affirmed the importance of financial development to economic growth.2 A question that remains, however, is how to measure financial development. Moreover, it would be helpful if one could identify those aspects of financial development that are important for improving economic performance.
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