Financial Development, Human Capital Development and Economic Growth in Sub-Saharan African Countries

Abstract

Over the years, there has been a pressing need to improve the state of human capital development and financial development, to pay more attention to it and the benefits it holds in the economy. However, this has not been the case in the Sub-Saharan Africa region, as there has been a major decline in comparison to the other regions of the world. The study examined the relationship between financial developments, human capital development on economic growth in Sub- Saharan African (SSA) countries. The data collected for this research work was obtained from the World Bank, for the 45 Sub-Saharan countries for twenty-four years (1997 to 2020). Descriptive analysis was used to analyze the data set; while panel regression analysis and unit root, testing was also carried out. The results of the study indicates that financial stability and human capital development (education) has significant relationship on the economic growth in Sub-Saharan African countries. The study therefore recommends that the government should attach a higher level of importance to human capital development as well as financial access to ensure economic growth in Sub-Saharan Africa.