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

Abstract

This study examined the connection between institutional quality, financial development and economic 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 GMM was used as the technique of estimation. The study found that financial development negatively impacts economic growth in low-income countries. The results also showed that institutional quality contributes to economic growth. The results showed that the interaction of institutional quality with financial development does not enhances economic growth in low-income countries.