JSPES, Vol. 44, No. 3-4 (Fall-Winter 2019)
pp. 253-270

The Impact of Financial Development on the Economies of SADC Members    

Sergio Clerc Marc
Shanghai University of Finance and Economics, Shanghai, China

Masoud Filsouf Kakhki
Ferdowsi University, Mashhad, Iran

Toktam Hatamisengeli
Shahrood University of Technology, Shahrood, Iran

H R. Rahimi
American Graduate School in Paris, France

The aim of this study is to assess the effect of financial development on economic growth of eight members of Southern African Development Community (SADC) based on empirical study of the eight countries. The Pooled Mean Group, Pooled Mean and the dynamic fixed effect demonstrate the long run and short-run estimation. In the long run, a positive relationship exists between the economic growth and the financial development but in the short run the relationship is rather negative. In spite of previous and current reforms, evidence states that most of those countries’ financial systems remain underdeveloped compared to other regions of the world despite the financial liberalization, financial system development and its outcome to path the growth within the SADC region.