Author(s): Ndri Konan Leon
This paper investigates the role of inflation on financial development-economic growth nexus in Côte d’Ivoire using annual data on economic growth, domestic credit to private sector, and inflation over the period 1994 to 2018. The paper tests the long run relationships among the variables by means of the ARDL bounds testing procedure. The findings are threefold. First, a long run relationship among the variables is found when considering economic growth as the dependent variable. Second, the effect of inflation on financial development in determining economic growth is positive. Third, Cote d’Ivoire can boost economic growth by improving its financial market efficiency while maintaining low inflation rates.