Dutch Journal of Finance and Management

The Finance-Investment-Growth Causal Connection: Evidence from the Republic of Congo
Brian Muyambiri 1 *
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1 Botswana Open University, BOTSWANA
* Corresponding Author
Research Article

Dutch Journal of Finance and Management, 2020 - Volume 4 Issue 1, Article No: em0061
https://doi.org/10.29333/djfm/8364

Published Online: 25 Jun 2020

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APA 6th edition
In-text citation: (Muyambiri, 2020)
Reference: Muyambiri, B. (2020). The Finance-Investment-Growth Causal Connection: Evidence from the Republic of Congo. Dutch Journal of Finance and Management, 4(1), em0061. https://doi.org/10.29333/djfm/8364
Vancouver
In-text citation: (1), (2), (3), etc.
Reference: Muyambiri B. The Finance-Investment-Growth Causal Connection: Evidence from the Republic of Congo. DUTCH J FINANCE MANA. 2020;4(1):em0061. https://doi.org/10.29333/djfm/8364
AMA 10th edition
In-text citation: (1), (2), (3), etc.
Reference: Muyambiri B. The Finance-Investment-Growth Causal Connection: Evidence from the Republic of Congo. DUTCH J FINANCE MANA. 2020;4(1), em0061. https://doi.org/10.29333/djfm/8364
Chicago
In-text citation: (Muyambiri, 2020)
Reference: Muyambiri, Brian. "The Finance-Investment-Growth Causal Connection: Evidence from the Republic of Congo". Dutch Journal of Finance and Management 2020 4 no. 1 (2020): em0061. https://doi.org/10.29333/djfm/8364
Harvard
In-text citation: (Muyambiri, 2020)
Reference: Muyambiri, B. (2020). The Finance-Investment-Growth Causal Connection: Evidence from the Republic of Congo. Dutch Journal of Finance and Management, 4(1), em0061. https://doi.org/10.29333/djfm/8364
MLA
In-text citation: (Muyambiri, 2020)
Reference: Muyambiri, Brian "The Finance-Investment-Growth Causal Connection: Evidence from the Republic of Congo". Dutch Journal of Finance and Management, vol. 4, no. 1, 2020, em0061. https://doi.org/10.29333/djfm/8364
ABSTRACT
This paper examines the causal relationship between financial development and investment in the Republic of Congo for the period 1960 to 2017. The causal relationship between financial development, investment and economic growth is examined using four multivariate Granger-causality models. The study found that the finance-investment-growth causal relationship is highly dependent on the choice of the financial development indicator used. In addition, all financial development indicators, except domestic credit provided to the private sector, were found to Granger cause investment in the short run. Furthermore, investment has been found to Granger cause economic growth in the short run when domestic credit provided by the financial sector and the composite financial development index are included as measures of financial development in subsequent models. Therefore, dependent on the policy focus, economic policy through financial development should take into account the financial indicator so as to predict and/or achieve the resultant policy objectives.
KEYWORDS
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