Title: Testing classical and neo-classical models on banks in Africa

Authors: Jacob Tche

Addresses: Department of Economics and Management, University of Yaoundé II, P.O. Box 1365, Yaoundé, Cameroon

Abstract: In the present paper, we aim at filling the gap created by the few and conflicting econometric works on classical and neo-classical theoretical models on banks in Africa. Based on the case of banks and economic growth in 33 Sub-Sahara African countries for the 1990-2021 periods, we employ the Granger causality tests in heterogeneous panels developed by Juodis et al. (2021), the fixed effect ordinary least squares method, the mean group method and the generalised method of moments to conclude that, in the short and long runs, there was no evidence supporting the classical and neo-classical models on banks suggesting that banks development precedes economic growth.

Keywords: classical; neo-classical; banks; investment; growth; Africa.

DOI: 10.1504/AJESD.2024.139154

African Journal of Economic and Sustainable Development, 2024 Vol.9 No.4, pp.391 - 409

Received: 25 Mar 2023
Accepted: 20 Dec 2023
Published online: 16 Jun 2024 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article