The Role of Financial Development on Economic Growth in South Africa

Sevgi Sumerli Sarıgül; Murat Çetin

doi:10.54821/uiecd.1775746

EN TR

The Role of Financial Development on Economic Growth in South Africa

Abstract

South Africa has long been a prominent example of economic growth, unlike other African countries. Therefore, this study investigates the financial development-economic growth link employing time-series techniques over the period 1990-2022. It also incorporates energy efficiency, trade openness, and government spendings into the economic growth model. The study uses the ARDL bounds test to analyze the cointegration relationship and the FMOLS estimator for long-term coefficient estimates. The estimates suggest that financial development accelerates economic growth. Therefore, the "financial development-driven economic growth" hypothesis is proven for the South African economy. The estimates also suggest that energy efficiency, trade openness, and government spendings support economic growth. These results may offer important recommendations for growth policies in the South African economy.

Keywords

Güney Afrika’da Finansal Gelişmenin Ekonomik Büyüme Üzerindeki Rolü

Abstract

Güney Afrika, uzun süredir diğer Afrika ülkelerinden farklı olarak görece güçlü ekonomik büyüme performansı ile dikkat çekmektedir. Bu çalışmanın amacı, 1990–2022 dönemine ilişkin veriler kullanılarak finansal gelişmenin ekonomik büyüme üzerindeki etkisini zaman serisi yöntemleri aracılığıyla incelemektir. Analize finansal gelişmenin yanı sıra enerji verimliliği, ticari dışa açıklık ve kamu harcamaları da dahil edilmiştir. Eşbütünleşme ilişkisini test etmek amacıyla ARDL sınır testi uygulanmış, uzun dönem katsayılarının tahmininde ise FMOLS yöntemi kullanılmıştır. Ampirik bulgular, finansal gelişmenin ekonomik büyümeyi anlamlı ve pozitif yönde etkilediğini ortaya koymakta; dolayısıyla “finansal gelişme odaklı büyüme” hipotezini Güney Afrika ekonomisi bağlamında doğrulamaktadır. Ayrıca enerji verimliliği, ticari dışa açıklık ve kamu harcamalarının da ekonomik büyümeyi desteklediği sonucuna ulaşılmıştır. Elde edilen bulgular, Güney Afrika ekonomisinin büyüme politikalarına yönelik önemli politika önerileri sunmaktadır.

Keywords

References

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Details

Primary Language

English

Subjects

Economic Models and Forecasting

Journal Section

Research Article

Authors

Sevgi Sumerli Sarıgül ^*
0000-0002-3820-6288
Türkiye

Murat Çetin
0000-0002-7886-4162
Türkiye

Publication Date

September 30, 2025

Submission Date

September 1, 2025

Acceptance Date

September 29, 2025

Published in Issue

Year 2025 Volume: 7 Number: 3

DOI

https://doi.org/10.54821/uiecd.1775746

IZ

https://izlik.org/JA62GJ74DB

Cite

RIS / Bibtex

APA

Sumerli Sarıgül, S., & Çetin, M. (2025). The Role of Financial Development on Economic Growth in South Africa. International Journal of Business and Economic Studies, 7(3), 219-230. https://doi.org/10.54821/uiecd.1775746

AMA

1.Sumerli Sarıgül S, Çetin M. The Role of Financial Development on Economic Growth in South Africa. BES JOURNAL. 2025;7(3):219-230. doi:10.54821/uiecd.1775746

Chicago

Sumerli Sarıgül, Sevgi, and Murat Çetin. 2025. “The Role of Financial Development on Economic Growth in South Africa”. International Journal of Business and Economic Studies 7 (3): 219-30. https://doi.org/10.54821/uiecd.1775746.

EndNote

Sumerli Sarıgül S, Çetin M (September 1, 2025) The Role of Financial Development on Economic Growth in South Africa. International Journal of Business and Economic Studies 7 3 219–230.

IEEE

[1]S. Sumerli Sarıgül and M. Çetin, “The Role of Financial Development on Economic Growth in South Africa”, BES JOURNAL, vol. 7, no. 3, pp. 219–230, Sept. 2025, doi: 10.54821/uiecd.1775746.

ISNAD

Sumerli Sarıgül, Sevgi - Çetin, Murat. “The Role of Financial Development on Economic Growth in South Africa”. International Journal of Business and Economic Studies 7/3 (September 1, 2025): 219-230. https://doi.org/10.54821/uiecd.1775746.

JAMA

1.Sumerli Sarıgül S, Çetin M. The Role of Financial Development on Economic Growth in South Africa. BES JOURNAL. 2025;7:219–230.

MLA

Sumerli Sarıgül, Sevgi, and Murat Çetin. “The Role of Financial Development on Economic Growth in South Africa”. International Journal of Business and Economic Studies, vol. 7, no. 3, Sept. 2025, pp. 219-30, doi:10.54821/uiecd.1775746.

Vancouver

1.Sevgi Sumerli Sarıgül, Murat Çetin. The Role of Financial Development on Economic Growth in South Africa. BES JOURNAL. 2025 Sep. 1;7(3):219-30. doi:10.54821/uiecd.1775746