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This paper uses the recent development in unit root tests and cointegration as applied to panel data and dynamic time series to estimate the relationship between financial liberalization, financial development and growth. The authors utilize data from 15 Sub-Saharan African countries and use the ratio of private sector credit and share of domestic credit to income as indicators of financial development. The results obtained from a hetrogenous panel investigation and times series methodology such as Granger causality indicate a long-run equilibrium relationship between financial development and economic growth.
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