This study examines the moderating effect of institutional quality on the finance-growth nexus in South Africa from 1986 to 2015. Design/methodology/approach This study adopts unit root tests, cointegration test and autoregressive distributed lag (ARDL) model. Findings The findings reveal that institutional quality constitutes a drain to the growth benefits of financial development (FD) in South Africa in the short-run while FD and institutional quality converge to enhance growth process of the country in the long-run. Also, the threshold of institutional quality beyond which institution stimulates strong positive impact of finance on growth is estimated to be 6.42 on a 10-point scale. Practical implications This study, therefore, suggests that institutional quality matters in the way FD influences economic growth in South Africa. Hence, stakeholders are encouraged to trace and block lapses and loopholes in the institutional framework guiding financial system in South Africa so as to maximize growth benefits of FD. Originality/value This study contributes to the extant studies by introducing a country-specific analysis into the empirical examination of how institutional quality influences the impact of FD on economic growth. Also, this study deviates from other studies by determining the threshold of institutional quality beyond which FD stimulates strong positive effect on economic growth in South Africa.
Related Resources
-
Abolishing Child Marriage in Indonesia’s Marriage Law through Feminist Legal Theory and Child’s Rights Approach
Sigiro, Atnike Nova. “Abolishing Child Marriage in Indonesia’s Marriage Law through Feminist Legal Theory and Child’s Rights Approach.” Jurnal Perempuan 25, no. 2 (2020): 117.
- Open Source Results
- Authors with Diverse Backgrounds
-
Gender-Based Violence AND 'Feminicide' in Queer Italian Movements: Questioning Gender, Sexuality, and The (Hetero) Normative Order
Peroni, Caterina. “Gender-Based Violence AND 'Feminicide' in Queer Italian Movements: Questioning Gender, Sexuality, and The (Hetero) Normative Order.” SSRN, January 6, 2016.
- Open Source Results
- Authors with Diverse Backgrounds