INSTITUTIONAL GOVERNANCE, FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH IN LOW-INCOME COUNTRIES

Abstract

This study examined the connection between institutional quality, financial development andeconomic growth in low-income countries of sub-Saharan Africa during the period of 2001-2020. The study makes use of panel data from 22 sub-Saharan countries. The system GMMwas used as the technique of estimation. The study found that financial developmentnegatively impacts economic growth in low-income countries. The results also showed thatinstitutional quality contributes to economic growth. The results showed that the interactionof institutional quality with financial development does not enhances economic growth inlow-income countries.