Zakaria Yakubu

Azman Hashim International Business School,

Universiti Teknologi Malaysia,

Kuala Lumpur, Malaysia;

Department of Economics,

Kaduna State College of Education Gidan Waya,

Kafanchan, Kaduna State, Nigeria

zakyakdo@yahoo.com

Financial and economic determinants of sustainable economic growth in Egypt, Nigeria and South Africa

Nanthakumar Loganathan

Azman Hashim International Business School,

Universiti Teknologi Malaysia,

Johor Bahru, Johor, Malaysia 

n4nantha@yahoo.com

Asan Ali Golam Hassan

Azman Hashim International Business School,

Universiti Teknologi Malaysia,

Kuala Lumpur, Malaysia

asanali@utm.my

*Abbas Mardani

Informetrics Research Group, Ton Duc Thang University, Ho Chi Minh City, Vietnam

Faculty of Business Administration, Ton Duc Thang University, Ho Chi Minh City, Vietnam.

* Corresponding Email: abbas.mardani@tdtu.edu.vn

Dalia Streimikiene

Lithuanian Institute of Agrarian Economics,

Vilnius, Lithuania

dalia.streimikiene@knf.vu.lt

Abstract. This study analyzes financial and economic determinants of sustainable economic performance using the quantile regression for the period from 1970 to 2016 for Egypt, Nigeria and South Africa. The main drivers of sustainable economic performance vary among the economies. It is driven by trade openness, government expenditure and political stability in Egypt. In South Africa, the desired threshold for financial development to impact growth is reached. Also, there is complementarity between financial development and trade openness. This proves their advancement at the domestic financial markets in the direction to sustainable economic performance. Interestingly, Nigerian economy’s sustainable growth is enhanced by capital account openness. Policies that will boast intra trade in Africa are encouraged as the AfCFTA has come to spur manufacturing activities on the continent. At the same time, emphasis should be set to improve financial and economic determinants of sustainable economic performance.

Received: December, 2018

1st Revision: May, 2019

Accepted: November, 2019

DOI: 10.14254/2071-8330.2019/12-4/11

JEL Classification: F43, O47

Keywords: bootstrap quantile regression, cointegration, economic growth