Institutional quality and financial deepening

We employ panel data from World Governance Indicators and World Development Indicators to analyse the influence of institutional quality on credit to the private sector by banks as a proxy of financial deepening in 50 African countries over two decades (2000-2019). The dependent variable: domestic credit to private sector by banks as a percentage of GDP (credit); Explanatory variables: rule of law (rul), regulatory quality (reg), government effectiveness (gov), voice and accountability (dem), control of corruption (cor) and political stability (pol). Control variables: GDP per capita (gdppc), trade openness (trade), inflation (inf) and mobile phone subscription for 100 inhabitants (mob).