Financial System Development and Economic Development in Malawi

dc.contributor.advisorNdlovu, Godfrey
dc.contributor.authorChikafa, Scora
dc.date.accessioned2023-03-01T12:00:28Z
dc.date.available2023-03-01T12:00:28Z
dc.date.issued2022
dc.date.updated2023-02-20T12:24:12Z
dc.description.abstractThe financial system development and economic development nexus has been a debate for over a decade. Both theory and empirical evidence provides conflicting evidence on the direction and nature of the relationship between financial system development and economic development. Results vary widely depending on whether one uses bank-based or market-based indicators of financial development. This paper seeks to address by using the composite indicator of financial development, developed by the International Monetary Fund( IMF), which captures depth, access, and efficiency of the financial system. Using yearly data of the period range 1980 to 2019, and employing an Autoregressive Distributed Lag (ARDL) cointegration technique or bound cointegration technique, the paper finds a significant long run negative relationship between financial system development and economic development, which runs from financial system development to economic development of Malawi. Therefore, in order to improve economic development, Malawi has been advised to improve its financial system through easy credit access and boosting its forex market, improve infrastructure and implement financial literacy programs that would teach citizens how best they can utilize resources given to them.
dc.identifier.apacitationChikafa, S. (2022). <i>Financial System Development and Economic Development in Malawi</i>. (). ,Faculty of Commerce ,School of Economics. Retrieved from http://hdl.handle.net/11427/37082en_ZA
dc.identifier.chicagocitationChikafa, Scora. <i>"Financial System Development and Economic Development in Malawi."</i> ., ,Faculty of Commerce ,School of Economics, 2022. http://hdl.handle.net/11427/37082en_ZA
dc.identifier.citationChikafa, S. 2022. Financial System Development and Economic Development in Malawi. . ,Faculty of Commerce ,School of Economics. http://hdl.handle.net/11427/37082en_ZA
dc.identifier.ris TY - Master Thesis AU - Chikafa, Scora AB - The financial system development and economic development nexus has been a debate for over a decade. Both theory and empirical evidence provides conflicting evidence on the direction and nature of the relationship between financial system development and economic development. Results vary widely depending on whether one uses bank-based or market-based indicators of financial development. This paper seeks to address by using the composite indicator of financial development, developed by the International Monetary Fund( IMF), which captures depth, access, and efficiency of the financial system. Using yearly data of the period range 1980 to 2019, and employing an Autoregressive Distributed Lag (ARDL) cointegration technique or bound cointegration technique, the paper finds a significant long run negative relationship between financial system development and economic development, which runs from financial system development to economic development of Malawi. Therefore, in order to improve economic development, Malawi has been advised to improve its financial system through easy credit access and boosting its forex market, improve infrastructure and implement financial literacy programs that would teach citizens how best they can utilize resources given to them. DA - 2022_ DB - OpenUCT DP - University of Cape Town KW - Autoregressive Distributed Lag Model KW - Economic Development KW - Financial Development Index KW - Malawi LK - https://open.uct.ac.za PY - 2022 T1 - Financial System Development and Economic Development in Malawi TI - Financial System Development and Economic Development in Malawi UR - http://hdl.handle.net/11427/37082 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/37082
dc.identifier.vancouvercitationChikafa S. Financial System Development and Economic Development in Malawi. []. ,Faculty of Commerce ,School of Economics, 2022 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/37082en_ZA
dc.language.rfc3066eng
dc.publisher.departmentSchool of Economics
dc.publisher.facultyFaculty of Commerce
dc.subjectAutoregressive Distributed Lag Model
dc.subjectEconomic Development
dc.subjectFinancial Development Index
dc.subjectMalawi
dc.titleFinancial System Development and Economic Development in Malawi
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationlevelMCom
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