FINANCIAL INTEGRATION AND ECONOMIC GROWTH IN THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY

Paramaiah, Ch, Lesotho, S, Kumar, P and Machema, R (2021) FINANCIAL INTEGRATION AND ECONOMIC GROWTH IN THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY. Academy of Marketing Studies Journal, 25 (3). ISSN 1528-2678

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Abstract

In this paper, an attempt has been made to assess the relationship between financial integration and economic growth in the Southern African Development Community (SADC). The nexus between financial integration and economic growth works through several channels such as enabling the flow of funds across countries. This flow of funds augments the pool of available domestic savings. The financial integration is able to spur economic growth, therefore, several countries have adopted financial integration agendas in order to boost growth. The empirical evidence on the effects of financial integration on economic growth is not conclusive. In this paper, a modest attempt has been made to investigate relationship financial integration and economic growth in the SADC region. This study employed the Chin-Ito index and the ratio of Foreign Direct Investment (FDI) to Gross Domestic Product (GDP) to measure financial integration in the SADC region. The results reveal that there is a positive and statistically significant relationship between financial integration and economic growth in the SADC countries. The findings, therefore, underscore the need for SADC to engage in policies that would position SADC as the preferred destination for FDI.

Affiliation: Skyline University College
SUC Author(s): Paramaiah, Ch ORCID: https://orcid.org/0000-0003-3504-2481 and Kumar, P ORCID: https://orcid.org/0000-0001-9790-6754
All Author(s): Paramaiah, Ch, Lesotho, S, Kumar, P and Machema, R
Item Type: Article
Uncontrolled Keywords: Financial Integration, ECONOMIC GROWTH, SOUTHERN AFRICAN
Subjects: A Business and Management > AE Economics
Divisions: Skyline University College > School of Business
Depositing User: Mr SUC Library
Date Deposited: 01 Jul 2022 14:32
Last Modified: 01 Jul 2022 14:32
URI: https://research.skylineuniversity.ac.ae/id/eprint/538
Publisher URL: https://www.abacademies.org/abstract/financial-int...
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