Research Summaries 1 - 10

1.Financial development and Economic growth in Cameroon

Tabi Atmenkeng Johannes, Aloysius Mom Njong and Neba Cletus (2011) conducted this research.In this
research, time series data for the period 1970-2005 is used to examine the relationship between
economic growth and financial development in Cameroon. By applying Johansen method of
cointegration analysis and some other financial development techniques, it is found that financial
development positively influences economic growth, moreover, there is a two way causality relationship
between them. In order to speed up the overall development of the country, the present financial
reforms should be pushed forward which will further influence the economic development in a positive
way.
2.Does Financial Development ‘Lead’ Economic Growth? The Case of China

Jordan Shan and Qi Jianhong (2006) conducted this research to examine how the financial development
influences the economic growth of China. It has different results than a general approach, as the
innovation accounting analysis is applied to study the interrelationship between the variables in VAR
(Vector Autoregression) system. As a result, it is observed that the most important force in leading the
economic growth of China, is the contribution from labor input whereas the financial development
comes at second number. This type of study is limited in the case of China. It promotes the view of two
way causality between economic growth and financial development, going against the ‘financial-led
growth’ hypothesis and therefore provides a fascinating area of study in literature on the relation
between finance and growth.

3.Financial development and economic growth in Sun – Saharan Africa: A Dynamic Panel Data Analysis

Elie Ngongang (2015) carried out this research to analyze the relationship between economic growth
and financial development. Economic growth empowers and develops the GDP (gross domestic product)
in every aspect. A controversial relation between financial and real sphere is examined in this work. By
the use of dynamic panel and by the observation of data on the 21 Sub-Saharan African countries, the
existence of a positive link between economic growth and financial development is shown, which is
extremely powerful for the financial system of the Sub-Saharan African space.

4. Dynamic Causal Relationship among GDP, Exports and Foreign Direct Investment (FDI) in developing
countries.

Mohsen Mehrara, Amin Haghnejad, Jalal Dehnavi, Fereshteh Jandaghi Meybodi (2012) conducted the
research using panel techniques to examine the causality between economic growth, exports and
Foreign Direct Investment (FDI). A sample of developing countries was taken and studied over a span
from 1980-2008. Results concluded that there is a bi-directional causality between economic growth
and FDI. On these basis the research concluded with this recommendation that outward-oriented
strategies and policies for attracting more FDI to be focused by developing countries to achieve high
economic growth.
5. Stock market development and economic growth: The Causal linkage

Guglielmo Maria Caporale, Peter G. A Howells and Alaa M. Soliman (2004) carried out this research to
understand the relationship between stock market development and its impact on economic growth.
For this, a total of seven countries were taken under study and results analyzed that the well-stabled
stock market can yield fruitful results to the economy in the long run. The conclusions also stood by the
theories as per which the well-functioning stock markets are the promoters of good economy.

6. The impact of financial sector development on economic growth: an Analysis of the financial
development gap between cameroon and South Africa.

Piabuo Serge Mandiefe (2015) conducted this research to examine the short and long run impact of
financial sector development on economic growth. The research also focuses on the gap in the financial
development that differentiates between Cameroon and an emergent country like South Africa. For this,
the vector error correction model was used. The results for Cameroon concluded 60% speed of
adjustment for a long term relationship between financial development and economic growth.
Meanwhile for South Africa the speed of 86% for the same relation signifying that Cameroon needs to
speed up the long-run adjustment by 26%.

7. Role of stock market development on economic growth in Nigeria: A time series analysis

Alajekwu, Udoka Bernard and Achugbu, Austin A (2012) carried out this research to examine the role of
stock market development on economic growth. The study was confined to Nigeria region for a time
period of 15 years ranging from 1994-2008. The Ordinary Least Square (OLS) method was used to
conduct the research. Stock market capitalisation ratio was taken as a proxy for market size. The
research concluded that the value added ratios and market capitalization have small negative
correlation whereas the turnover ratio has a strong positive Correlation with the economic growth.

8. The contribution of financial sector development for economic growth in East Africa

Worku R. Urgaia (2016) conducted a research to analyse the contribution of Financial Sector Development
(FSD) to Economic Growth in East Africa. A five variable dynamic panel Fully Modified Ordinary Least
Squares (FMOLS) was employed to estimate the short-run and long-run parameters. The panel data of
nine East African countries over the period 1975-2014 was used and analysed. Results concluded that the
contributions of the FSD and the Gross Capital Formation GCF have positively significant impact to the
Economic Growth. While the net Official Development Assistance and Aid received from abroad lnDA has
negatively significant impact on the East African economic Growth. The gain of this study, therefore,
provides the Supply and Demand Leading Hypotheses; means Financial Sector accelerates and augments
the economic growth and the Economic Growth enhances the Development of Financial Sector. The
implications drawn from this study are the reforms in the Financial Sector; inclusiveness of Financial
System and effective vigorously pursued expansionary monetary policy, which directs the economy, could
be a comprehensive beneficial to the study countries.
9. Financial Dependence, Banking sector competition and economic growth

Stijin Claessens and Luc Laeven(2005) conducted this research to analyze the relationship among:
competition in the financial sector, access of firms to external financing and economic growth. The study
was done on 16 counties in which the organizational based measures of banking competition was done.
The studies, when later compared, resulted in recommendations that the banking competition allows
financially dependant industries to grow faster. The results also conclude that the degree of competition
is an important aspect of financial sector functioning.

10. Modelling the effects of financial sector functions on economic growth in a developing country:
cointegration and error correction approach

David Tennant, Claremont Kirton and Abdullahi Abdulkadri (2011) carried out this research to develop
the proxies for each of Levine's (1997) five functions of financial sector. Each of this function was
analysed in relation to economic growth using methods that conform to the theory. The results
concluded that savings mobilization was the major driving force which influences the functions of
financial development. Three of these functions have proved a long-run effect on economic growth.
Remaining two functions were also considered to have an important place. Results concludingly
indicates that financial sector generates the largest impact on economic growth by mobilizing the
savings and ensuring that those funds are allocated to productive uses.