Acaravci, Songul KakilliOzturk, IlhanAcaravci, Ali2024-09-192024-09-1920091015-8812https://doi.org/10.4102/sajems.v12i1.258https://hdl.handle.net/20.500.12483/15067In this paper we review the literature on the finance-growth nexus and investigate the causality between financial development and economic growth in sub-Saharan Africa for the period 1975-2005. Using panel co-integration and panel GMM estimation for causality, the results of the panel co-integration analysis provide evidence of no long-run relationship between financial development and economic growth. The empirical findings in the paper show a bi-directional causal relationship between the growth of real GDP per capita and the domestic credit provided by the banking sector for the panels of 24 sub-Saharan African countries. The findings imply that African countries can accelerate their economic growth by improving their financial systems and vice versa.eninfo:eu-repo/semantics/openAccessFinancial developmentGrowthPanel causalitySub-Saharan AfricaReview Article121112710.4102/sajems.v12i1.2582-s2.0-77949947465Q2