Abstract:
The development of the financial markets is considered as a major avenue for
propelling the growth of economies. The study assessed the contributory role
of financial market development to the growth of Sub-Saharan African
economies using the quantile regression approach. The study focused on fortyeight
economies within the Sub-Saharan African region and employed data
from 2002 to 2019. The study was based on the explanatory design and the
quantitative approach while descriptive statistics, unit root analysis,
correlation analysis, Generalized Method of Moments (GMM) estimator, and
the quartile regression were used to analyse the financial market development
and economic growth nexus. Using the Generalized Method of Moments
(GMM) estimator to implicate the short-run and long-run nexus, the result
revealed that financial market development and economic growth are
positively related in both the short-run and long-run. Also, a bi-directional
causality was found to exist between financial market development and
economic growth in Sub-Saharan Africa. The quantile regression result
showed that financial market development increases economic growth for the
5th to the 75th quantile growth distributions but for the 95th quantile
distribution, financial market development reduces economic growth. The
study recommended that governments of Sub-Sahara Africa economies should
support the development of the financial sector through granting of more
credit to the private sector to cushion the productivity and growth prospects
