Economic Freedom and Financial Development in Africa: Evidence from Panel Quantile Regression

Abstract: The study examines if economic freedom matters for financial development in Africa, using a panel of 41 countries from 2000 to 2021, adopting the panel quantile regression estimator. The empirical results show that the impact of economic freedom on financial development is significantly positive with evidence of non-linearity, highlighting that indeed, economic freedom matters for financial development in Africa. Findings suggest the need to encourage policies which promote greater economic freedom, to raise Africa’s financial development. Keywords: Africa, Formal Institutional Quality, Economic Freedom, Financial Development, Panel Quantile Regression JEL classification Number: G28, O11, O43, O55