Analysis of the relationship between financial development and economic growth in Mauritania

Abstract

This article examines the causal link between financial development and economic growth in Mauritania during the period 1992-2019 using Johansen's approach based on the ordinary least squares (OLS) method. The empirical results of this study show that in the short-run only the variables credit to the private sector and mobilization of savings are significant with negative effects. However, in the long-run, it is only the variables: public expenditure, trade openness and credit to the private sector, that are significant. The impact of the first variable was positive while those of the last were negative.