Financial Development and Tourism Performance in Sub-Saharan Africa
Evidence from a Multidimensional Finance Index
Bibliographic Data
| ID | 21737405 |
|---|---|
| Authors | Solomon Luther Afful (0000-0002-9752-8463, University of Mines and Technology, corresponding author), Isaac Bentum-Ennin (University of Cape Coast), Eric Amoo Bondzie (0000-0002-1251-2199, University of Cape Coast) |
| Year | 2026 |
| Pages | 1-17 |
| Publication date | 2026-06-08 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of African Business (JOURNAL) |
| Journal identifiers | ISSN: 1522-8916 • E-ISSN: 1522-9076 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/15228916.2026.2680799 |
| OpenAlex | W7163870625 |
| Language | EN |
| References cited | 44 |
This study examines the effect of financial development on tourism performance in Sub-Saharan Africa (SSA), addressing the limited attention given to tourism as an outcome of financial sector development. Using panel data for 33 SSA countries from 2000-2021 and employing the System Generalised Method of Moments (System GMM), the study decomposes financial development into financial institutions and financial markets to examine their differential effects on international tourism receipts. The results show that overall financial development significantly enhances tourism performance, with financial institutions exerting a stronger influence than financial markets. Trade openness, institutional quality, digitalisation, and GDP per capita also positively influence tourism performance, while inflation exerts a negative effect. The findings highlight the importance of credit access, banking depth, financial inclusion, and macroeconomic stability in promoting tourism development in SSA. The study recommends strengthening financial institutions, expanding access to finance for small and medium tourism enterprises, and promoting digital and infrastructure financing to support sustainable tourism growth within the region
Financial analysis · Financial sector development · Financial structure · Panel data · Tourism · Diverse Aspects of Tourism Research · Economic Growth and Development · Natural Resources and Economic Development
Financial Intermediation and Delegated Monitoring
Chapter 12 Finance and Growth
The weak instrument problem of the system GMM estimator in dynamic panel data models
International tourism, energy consumption, and environmental pollution
On the mechanics of economic development
Some Tests of Specification for Panel Data
Another look at the instrumental variable estimation of error-components models
Initial conditions and moment restrictions in dynamic panel data models
Institutions, Institutional Change and Economic Performance
Does Financial Development Raise Tourism Demand? A Cross-Country Panel Evidence
Tourism as a long-run economic growth factor
Relationship between financial development and inbound tourism
Nonlinear ARDL estimation of tourism demand for Puerto Rico from the USA
Tourism-led growth hypothesis in the top ten tourist destinations
Assessing the dynamic economic impact of tourism for island economies
Increasing Returns and Long-Run Growth
Bank Runs, Deposit Insurance, and Liquidity
| Citation velocity | historical |
|---|---|
| Highly cited | No |