{"title":"Does Financial Development Drive Private Investment? An Econometric Study with reference to Cote d’Ivoire","authors":"Y. Keho","doi":"10.25115/sae.v41i2.9086","DOIUrl":null,"url":null,"abstract":"This study examines the impact of financial development on domestic investment in Cote d’Ivoire. Using the Autoregressive Distributed Lag (ARDL) bounds testing approach and domestic credit to private sector as share of GDP as proxy for financial development along with the other control variables, we estimate a private investment function for the 1975-2019 period. The main finding of the study is that domestic credit to private sector has a negative effect on private investment rate. Further, the results show that real GDP per capita and trade openness are positively related to private investment rate.","PeriodicalId":210068,"journal":{"name":"Studies of Applied Economics","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2023-05-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Studies of Applied Economics","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.25115/sae.v41i2.9086","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
This study examines the impact of financial development on domestic investment in Cote d’Ivoire. Using the Autoregressive Distributed Lag (ARDL) bounds testing approach and domestic credit to private sector as share of GDP as proxy for financial development along with the other control variables, we estimate a private investment function for the 1975-2019 period. The main finding of the study is that domestic credit to private sector has a negative effect on private investment rate. Further, the results show that real GDP per capita and trade openness are positively related to private investment rate.