Abdulhadi Haruna Aliyara, Mustapha Jamilu Bello, Titus Agness


The study examines the impact of capital account liberalization on economic growth in five Sub-Saharan African Countries. The paper also analyzed the combined effect of capital account liberalization and bureaucratic quality on economic growthfrom 1984 to 2019. The study utilizes Driscoll and Kraay’s technique, which is robust to cross-sectional dependence, heteroskedasticity and serial correlation.Findings revealed that capital account deregulation, capital stock, labour force participation and foreign direct investment accelerates growth. Furthermore,evidence indicates that the interaction effect of capital account liberalization and bureaucratic quality encourage growth.Therefore, the study recommends that the various governments should implement policies geared toward more capital account openness. Member countries must also implement strategies that are geared toward further improvement in bureaucratic quality. Hence, to benefit from the numerous advantages of financial deregulation, the study suggests that member countries must improve their institutional environments. Finally, the findings indicate the critical role of sound and conducive business environment for a successful capital account liberalization.


capital account liberalization; bureaucratic quality; and economic growth.

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