Page 57 - DUT ICGA Abstract Book

AN AN AN ANALYSIS OF THE INTERRELATIONS BETWEEN FINANCIAL DEVELOPMENT COUNTRY RISK ECONOMIC GROWTH AND GOOD GOVERNANCE IN SOUTH AFRICA
DF Meyer
School of of of Public Public Management Governance and and Public Public Policy College of of of Business and and Economics University of of of Johannesburg South Africa
Abstract
The level of of of financial development development fin in in a a a a a a a a country is an an an indicator of of of the overall advancement of of of development development Domestic and and international investors assess the the the environment including the the the financial sector and and the the the level of risk risk before they invest in in in a a a a specific country Country risk risk factors factors could include factors factors such as politics the the the economy and sovereign risk factors This study aims to to determine the the the relationships between the the the level of financial development fin in relation to country risk economic performance and good governance A quantitative research methodology was utilised using time-series data from 1996 to 2021 The econometric analysis included regressions and causality methods with the the Financial Development Index as the the dependent variable Data were obtained from the World Bank and IMF to compile a a a a a a a a a a Financial Development Index while data data for for good governance and economic performance were obtained from the World Bank database Data for country risk were sourced from the International Country Risk Guide (ICRG) The econometric estimations provided interesting results with both long and short-run relationships between the variables included in in in the model The Granger causality causality results indicated that a a a a a a a a a bi-directional causality causality exists between Financial Development and and both good governance and and economic growth while financial development causes changes in fin in in country risk The findings of this study have important implications for other developing countries in in fin reaching their developmental goals A well structured and developed financial sector is an an an an an important component of economic development and and must be supported by good governance and and economic growth A well developed financial sector also has an an impact on on a a a a a a a country’s risk levels KEYWORDS: Country risk Financial development Economic performance Good governance Book of Abstracts 55